WebMD Private Equity Bids Due Monday: Report

Adding to November reports by TheStreet that WebMD(WBMD), the New York Post reports that private equity firms bidding for the online healthcare company have a Monday deadline.

The New York -based company is increasingly in deal crosshairs as reports of private equity bidding interest circle, just as legendary investors Carl Icahn and George Soros increase holdings in the lagging stock.

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KKR(KKR) and Providence Equity Partners are among four potential suitors for WebMD who have until Monday to firm bids, the Post reports, citing unnamed sources in a Thursday article.According to Post , potential private equity buyers will look to finance a purchase by raising debt equal to six times the company's earnings before interest taxes depreciation and amortization, half of the 12 times EBITDA valuation that a sale may warrant.The sale rumors follow November filings with the Securities and Exchange commission that activist Carl Icahn increased his WebMD stake to 9.5% from 7.9%, adding to top share stake in the company. After reports of sale talks first were revealed by TheStreet, Icahn publicly stated a preference for the company to consider a $1 billion stock buyback program in favor of a sale. He considers the company "undervalued from a long-term perspective."See Carl Icahn's portfolio.Thursday's added reports of a potential WebMD sale process boosted shares nearly 8% to $37.42 and above $3.49 price that shares closed at after first sale reports surfaced. Even with a rumor-fueled stock, WebMD shares have faltered in 2011, falling nearly 30% year-to-date.Content on this page requires a newer version of Adobe Flash Player.WebMD shares have gained nearly 50% since its 2005 IPO, however they fell to a post-crisis low of $25.56 in September.In its third quarter earnings in November, the company reported revenue of $135 million and net income of $11.2 million that beat Wall Street expectations by a healthy margin, but it also lowered its full-year revenue guidance because of a slowdown in marketing spending by pharmaceutical companies.At the time, the company forecast revenue of $555 million to $565 million, down from an August estimate of $580 million to $600 million.

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