Acquisition Rumors Spur Abbey Healthcare Shares : Stocks: Price rises 87.5 cents in Nasdaq trading. A Denver firm reportedly is courting the O.C. company.
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COSTA MESA — Abbey Healthcare Group’s stock gained 3.6% Tuesday amid reports that the Costa Mesa home health-care provider is in talks to be acquired by Coram Healthcare Corp.
Abbey’s stock rose 87.5 cents a share to close at $25.50 in Nasdaq trading.
Neither Abbey nor Coram, based in Denver, would comment on the rumor, and analysts who cover the two companies said they were unaware of any discussions. But some said there are reasons to think that an acquisition might be in the works.
“It would not surprise me because Coram is aggressive and determined to become the predominant provider of home-infusion therapy across the country,” said John Hindelong, an analyst with the brokerage Donaldson Lufkin & Jenrette in New York.
“Abbey is attractive to them in that sense,” Hindelong said, “because they are a presence in the home-infusion therapy market.”
Others, however, said that, even if the two companies are in acquisition discussions, a deal might not materialize.
Lori Price, an analyst with Oppenheimer & Co. in New York, pointed out that health care has been experiencing a wave of acquisition activity. In that atmosphere, many companies have discussed the possibility of merging, she said, but it does not always happen.
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