Centene stock spikes as activist investor Third Point pushes for its sale

Shares of Centene Corp (NYSE: CNC) shot up over 3% on average volume on Friday, after it was revealed that activist investor and CEO of asset management firm Third Point, Daniel Seth Loeb, has sought for the company’s sale.

According to The Wall Street Journal, Third Point holds at least a $300 million worth of stake in the insurance firm.

Loeb reportedly wants Centene to sell itself before it consummates the deal to buy WellCare Health Plans (NYSE: WCG) for $15.3 billion. The deal was announced in March this year, and both the companies are set to have shareholder meetings next month to sort out differences and go forward with the deal.

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Other activist investors including Corvex Management and Sachem Head Capital Management had also earlier put forward similar demands.

However, earlier this month, Centene chief Michael Neidorff said in a letter that the deal was under regulatory process and they are planning to go ahead with it.

Shares of health insurers Humana (NYSE: HUM) and UnitedHealth Group (NYSE: UNH) also spiked during intra-day trading on the likelihood of being a potential match to Centene. Shares of WellCare Health, meanwhile, fell into the red zone.

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