ACTIVIST THIRD POINT BUILDS STAKE IN HEALTH INSURER CENTENE

  • While the activist hedge fund confirms it has a financial position in Centene, neither the reason nor the size of the stake could be determined.
  • One report earlier in the day said Loeb and his partners at Third Point want the company to consider selling itself before shelling out $15.3 billion on WellCare.
  • “When considering M&A transactions, the Centene board considers any and all alternatives towards shareholder value creation,” says a Centene spokesperson.

Daniel Loeb’s Third Point has built a stake in Centene as the health insurer works to complete its previously announced purchase of WellCare Health Plans.

While the activist hedge fund confirmed Friday that it has a financial position in Centene, neither the reason for its involvement nor the size of the stake could be immediately determined by CNBC.

The Wall Street Journal reported earlier in the day that Loeb and his partners at Third Point want the company to consider selling itself before shelling out $15.3 billion on WellCare. The price tag represented a 32% premium to WellCare’s stock price prior to the deal’s announcement in March.

The Journal also reported through anonymous sourcing that other activists investors including Keith Meister’s Corvex Management and Sachem Head Capital Management have accrued stakes in Centene. For Third Point — one of Wall Street’s marquee activist investors in the U.S. and around the world — its involvement at the company likely adds gravity to any dissenting shareholder opinions on the Centene-WellCare transaction…

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