BOSTON (Reuters) – Hedge fund Third Point LLC said in a regulatory filing on Wednesday that it owns a 6.37% stake in Cano Health and is urging a strategic review that should focus on selling the U.S. company.
The New York firm, run by billionaire investor Daniel Loeb, said that it does not have plans to seek board seats now but may do so in the future if Cano’s board does not “adequately address the value gap” between the company’s share price and its intrinsic value.
A representative for Cano was not immediately available for comment. Based in Miami, Cano operates primary care medical centers in eight U.S. states and Puerto Rico, according to its website.
“Given recent developments at the Issuer and taking into account the market’s largely unfavorable view of companies taken public through special purpose acquisition vehicles, (Third Point) believe the Board of Directors should immediately engage financial and legal advisors to commence a review of strategic alternatives,” the firm said in a statement.
Cano Health is valued at $2.1 billion and its stock price surged 33.7% on the news that Third Point had taken a stake.
(Reporting by Svea Herbst-Bayliss in Boston and Leroy Dsouza in Bengaluru; Editing by Lisa Shumaker)
