A Burlington-based medical-testing company that employs about 1,000 people in the Triangle could be an acquisition target.
Shares of LabCorp jumped today on speculation that the company may be bought, Jefferies Group analyst Arthur Henderson told Bloomberg News.
LabCorp reported in a regulatory filing this morning that it altered its change-of-control provisions to eliminate additional severance pay to senior executives for excise taxes from payments related to a takeover.
That filing fueled speculation about a leveraged buyout, Henderson told Bloomberg. “These rumors have been building up for a couple of weeks,” Henderson said.
LabCorp shares rose $2.35 today to close at $79.33. The stock is up 27 percent in the past year.
Shares of larger rival Quest Diagnostics also jumped on buyout speculation, rising $1.60 to $59.86.
LabCorp, which employs about 28,000 people worldwide, announced last month that it will add 346 jobs in Greensboro as it consolidates billing operations from across the country. The company's operations include a massive genetics-testing facility in Research Triangle Park.