MedAssets rises as Starboard discloses stake, proposes strategic review and spending cuts

Industries Associated Press

Shares of MedAssets jumped in aftermarket trading Monday after activist investment firm Starboard Value LP said it had taken a stake in the health care company.

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Starboard said it believes MedAssets Inc. could boost its share price by cutting expenses, making better capital spending decisions and improving its corporate governance, and said MedAssets should consider strategic alternatives.

A representative for MedAssets wasn't immediately available to comment late Monday.

In a form filed with the Securities and Exchange Commission, Starboard said it owns 5.2 million shares of MedAssets, giving it an 8.7-percent stake in the company.

MedAssets helps hospitals, health systems, acute care providers and others reduce their costs and make their operations more effective. The Alpharetta, Georgia-based company said earlier this year that it started a review of its business called a "business transformation and value creation plan."

MedAssets shares rose $2.92, or 12.4 percent, to $26.52 in aftermarket trading. The stock has risen 12 percent over the last year and is trading around annual highs.