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Following multiple reports of a likely bid, Citigroup analysts said it would be a $14 share if it bought a primary care provider.

The deal is likely to close in the coming weeks, according to Bloomberg and The Wall Street Journal, citing people familiar with the matter.the news is

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(Ticker: CANO) Activist investors Third Point and Owl Creek are considering a sale to fund future growth. Cano Health CEO Marlon Hernandez said in August that the company was ready to accelerate value creation through strategic alternatives, hinting at a potential sale.

The company went public in June 2021 through a special purpose acquisition vehicle.

CVS (CVS) and Humana (HUM) declined to comment on reports that they were working to acquire Cano Health, but Cano did not immediately respond to a request for comment.

Cano Health currently has $47.85 million in cash, according to FactSet data, and Citi said it has about $120 million available in undrawn revolving credit facilities. The company said it does not need to raise additional funding in the short term and has no intention of lowering its credit line.

Cano Chief Financial Officer Brian Koppy said in August:

Still, Citi analyst Jason Casola said, “Given the market backdrop, we believe they are looking to fund future growth.” “Being under the umbrella of a larger company helps offset this dynamic effectively.”

Citi’s estimate of $14 per share as the purchase price for Cano is at CVS or

Humana

You will pay approximately double your earnings. In her August letter to Cano Health’s board of directors, Owl Creek also suggested her $14 takeaway price.

Cano Health, which operates primary care centers in California, Florida, and other states, primarily serves private sector Medicare Advantage members, an alternative to Medicare for the elderly. The company’s shares rose 4.3% to $8.70 on Friday. Shares are down 2% this year, a solid performance compared to the S&P 500’s 22% decline.

Please contact Karishma Vanjani at karishma.vanjani@dowjones.com.