Here's Why TeamHealth Holdings Surged 18%

Shares of TeamHealth Holdings Inc TMH surged higher by around 18 percent on Thursday after JANA Partners, an activist investment firm, disclosed an 8 percent stake in the company.

JANA Partners stated that it believes TeamHealth has made "missteps in critical areas including capital allocation, strategy and governance." The investment firm added that it believes the company can benefit by adding two of its nominees to the Board of Directors.

JANA Partners submitted a notice of its intention to nominate Edwin Crawford, a former Chairman of CVS Caremark Corporation, Nancy Schlichting, the President and CEO of Henry Ford Health System and Scott Otsfeld, a Partner and co-portfolio manager at JANA Partners.

TeamHealth issued a response to JANA Partner's disclosure. The company stated it "welcomes communications with its shareholders and values input toward the goal of enhancing shareholder value." In addition, the Board of Directors will "review and consider JANA's nominations and will make a recommendation it believes is in the best interest of all TeamHealth shareholders."