Shares of healthcare staffing company TeamHealth Holdings Inc. (NYSE: TMH) jumped as much as 16.4% on Monday after the company received a buyout offer from funds affiliated with Blackstone (NYSE:BX). At 11:30 a.m. EDT, shares were near their high for the day, up 16.3% on the day.
The offer from Blackstone was for $6.1 billion, or $43.50 per share in cash. The premium is 33% over the stock's share price on Oct. 3, the day before news that the company was considering a sale went public.
The offer does include a "go-shop" period during which TeamHealth's management can solicit other offers. As shares are trading about $0.65 below the offer price, it doesn't look like the market is pricing in much risk the deal will fall through or that another offer will come in before an expected close of the transaction in the first quarter of 2017.
At this point, I think investors in TeamHealth stock should take some of their chips off the table. The upside potential of another buyer emerging is fairly small, but if the deal falls through there's a lot of downside considering the recent jump in the stock. What we do know is that management found the option it was looking for to unlock shareholder value, and Blackstone thinks it can unlock even more value than TeamHealth could publicly.