Health care stocks were extending their gains from late last week, with the NYSE Health Care Index posting a 0.5% advance while shares of health care companies in the S&P 500 were up 0.4% as a group.
In company news, shares of Alliance HealthCare Services (AIQ) were surging Monday after the outsourced health care services company said Tahoe Investment Group was interested in acquiring all of the company’s stock it doesn’t already own for $9.60 apiece, a 20% premium over Friday’s closing price.
Tahoe, through an investment subsidiary, currently owns around 5.54 million Alliance shares, or about 52% of the company, following a March 29 stock purchase agreement. Overall, the non-binding proposal values Alliance at around $103.1 million, based on its 10.74 million shares outstanding.
The Alliance board has appointed a special committee of independent board members to evaluate Tahoe’s expression of interest, also hiring legal counsel and making plans to retain a financial advisor to assist with that process.