With less than two months left in the year, Paul Singer has found a new activist target and its stock is soaring on the hedgie’s involvement.
Shares of Florida-based Mednax gained as much as 9 percent to $49.97 Thursday morning after Singer’s Elliott Management announced a roughly 7 percent the healthcare company through a mix of stock and options.
The $34 billion hedge fund plans to speak with management about “strategic options and operational opportunities to maximize shareholder value,” which may include a sale of all or part of the company, according to a regulatory filing.
Mednax manages a network of 3,800 physicians throughout the US, primarily focused on neonatal care and anesthesiology. In recent years, the company made acquisitions in non-core areas such as revenue cycle management and radiology.
But the market so far hasn’t rewarded Mednax’s buying spree. Shares are down 46.6 percent from their August 2015 high of $85.47.
Reps from Mednax did not immediately respond to requests to comment.