U.S. primary care provider Cano Health Inc (NYSE:CANO) is reportedly exploring a sale and working with advisors after receiving acquisition interest from Humana Inc (NYSE:HUM) and CVS Health Corp (NYSE:CVS).

Hedge fund Third Point LLC, which owns 6.4% of Cano, has been pushing the company to put itself up for sale as its stock price has tumbled since it went public last year via the SPAC transaction.

People familiar with the situation told Wall Street Journal that discussions between Humana and Cano are serious. Assuming talks don't break down, a deal could be agreed upon as soon as next week.

After the article, Cano Health shares closed almost 40% up, giving the company a market value of nearly $5 billion.

Cano Health operates primary care centers in California, Florida, Nevada, New Mexico, Texas, Illinois, New York, New Jersey, and Puerto Rico, mainly serving Medicare Advantage members.

A deal could come during a time of heavy consolidation in health care.

CVS agreed to pay about $8 billion for home-health services provider Signify Health Inc (NYSE: SGFY) this month.

In July, Amazon.com Inc (NASDAQ: AMZN) agreed to acquire 1life Healthcare Inc (One Medical) (NASDAQ: ONEM) for $18 a share in an all-cash deal valuing the primary health care provider at roughly $3.9 billion.

Price Action: CANO shares are up 3.96% at $8.67 during the premarket session on the last check Friday.

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