Athenahealth shares fall after report Paul Singer retreats from bid

Athenahealth shares tanked on Tuesday after a report said Paul Singer’s activist firm Elliott Management has backed away from its $160-a-share bid for the health-care technology company.

Singer could be mulling a bid at a lower price, The New York Post reported Monday evening, citing sources. As a result of Singer’s retreat, Athena has extended the final bid deadline by 10 days to next Thursday, the paper said.

Shares of Athenahealth, which sells a software platform to medical providers, were more than 11 percent lower in premarket trading Tuesday at about $127 per share. The stock is more than 7 percent higher so far this year.

Elliott Management officials weren’t immediately available to comment. An Athena spokesperson said the company had no comment.

In May, Elliott Management said it was willing to pay that price — a total of $6.9 billion — contingent on due diligence. At the time, Elliott said its stake in the company was at 8.9 percent.

Athenahealth in June said it sought strategic alternatives after its founder and CEO Jonathan Bush stepped down, facing allegations that he attacked his then wife 13 years ago. When initially announcing the review, Athenahealth said it would consider a sale, merger or remaining an independent company.

Bush, nephew of former president George H.W. Bush, founded the health-care technology company in 1997.