Billionaire hedge fund manager David Tepper, of Appaloosa Management, bought 7.8 million shares of Boston Scientific stock during the 4th quarter, according to regulatory filings, for a stake with a market value of $41.6 million as of Dec. 31.
That could be a sign that rumors of a private equity takeover have some substance, according to TheStreet.com. Appaloosa’s stake in BSX accounts for about 6% of its entire, $765 million portfolio, according to the website. With share prices holding steady at the low price of about $6, Tepper’s interest could signal that the rumors are right.
"Given Tepper’s involvement, we think [a PE takeover] could be the case – making Boston Scientific (NYSE:BSX) a great speculative play. It is priced low enough to be an OK investment in the short term, but if the company is taken over, the returns could be magical," according to The Street.
BSX shares broke the $6 mark today, closing up 5.9% at $6.25 for the day.
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