Update 9:40am: Updates shares.
Cano Health (NYSE:CANO) fell 19% in early trading on Thursday after a report that activist investor Third Point sold its remaining stake amid worries about the healthcare company’s liquidity.
Third Point exited it Cano stake through a block trade last week, according to a Bloomberg report on Wednesday, which cited people familiar. Some of Cano’s biggest creditors are separately said to be organizing prior to possible debt discussions.
Cano Health and Third Point declined to comment to Bloomberg.
Dan Loeb’s Third Point hedge fund in March reported a 6.4% stake in Cano (CANO) and said the company should explore strategic alternatives, including a potential sale. In late October Third Point reported a reduced stake in Cano.
The latest report comes as Cano Health (CANO) has been a takeover target for months after a report that CVS Health (CVS) was in talks to acquire the primary care provider and after other M&A in the sector. Cano shares have plunged almost 80% since mid-October after a report that talks with CVS had ended.
Cano (CANO) shares plunged 35% on Nov. 10 after the company company issued its second consecutive guidance cut along with its Q3 financials.