SINGER SINGLE SUITOR

Likely Athena buyer

Paul Singer’s Elliott Management may end up owning Athenahealth after all.

The health care companies that would most logically be interested in Athenahealth, including Cerner Corp. and UnitedHealthcare, have taken a pass on the beleaguered benefits provider, two bankers said.

Elliott is teamed with Bain Capital on its bid. Bain owns Waystar, a health care technology company. Waystar may benefit if Bain buys Athenahealth, an industry banker said.

The two private equity firms are now the favorite to win the $6 billion health care company, sources said.

David Einhorn’s Greenlight Capital, which was shorting the stock, said in a July 31 letter to its investors that Elliott, despite saying in May it would be willing to buy the company for $160 a share, likely had little interest in actually purchasing Athenahealth, and was just putting it in play.

However, there are new signs Athenahealth would welcome a sale, sources said.

In a late Wednesday filing, Athenahealth reported that ousted founder and Chief Executive Jonathan Bush would receive $4.8 million in a sale, and new executive chair and former GE boss Jeffrey Immelt was earning $150,000 a month in salary and $150,000 in restricted stock.

That stock award becomes more valuable in a sale.

Elliott, which has an 8.9 percent stake in the company, succeeded in June to get Athenahealth to oust Bush — cousin to former President George W. Bush — and to put itself up for sale.

Athenahealth will take second-round bids Sept. 17.

Bids are expected to be around $160 a share, sources said.

Athenahealth shares closed Wednesday at $150.81, down 1 percent.

The New Yorker, in an Aug. 27 cover story on Singer, portrayed Athenahealth as the poster child for how activists force short-term changes that end up hurting companies in the long run.

Ex-CEO Bush, when he googled Elliott after it made a move on the company, realized he was “going to die,” he told The New Yorker.

By acquiring Athenahealth, Elliott, which recently started a private equity arm, could move to improve its earnings — proving it does not wreck businesses, the industry banker said.

Elliott and Bain declined to comment. UnitedHealth did not return calls.

Athenahealth said in June it was conducting a sales process.