Option Care Health jumps on report of $5 billion-plus takeover bid
BUZZ-Option Care Health jumps on report of $5 billion-plus takeover bid ** Shares of Option Care Health OPCH.O soar 23.2% to $28.79 premarket
** McKesson MCK.N and private equity firm CD&R were nearing a deal to buy OPCH for more than $5 billion, including debt, the Financial Times reported on Monday
** McKesson declined to comment, while CD&R and Option Care did not immediately respond to Reuters requests for comment sent on Monday
** OPCH had a market cap of about $3.5 billion as of last close, according to LSEG data
** William Blair analysts said the valuation looks "low for Option Care / attractive for McKesson/CD&R"
** "We view the reported >20% premium to Monday's close as a slight disappointment for Option Care and would not be surprised if one (or more) competitive bids emerge" brokerage adds
** As of last close, OPCH down 26.7% YTD
(Reporting by Kamal Choudhury in Bengaluru)
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