(Bloomberg) — Activist investor Elliott Investment Management has built a position in UDG Healthcare Plc, which has drawn shareholder criticism over the terms of its proposed takeover by buyout firm Clayton Dubilier & Rice.

The New York-based hedge fund, which is run by billionaire Paul Singer, disclosed in a regulatory filing Monday it owns a 3.1% stake in the company in derivatives and other options. It didn’t say in the filing what the nature of the investment was, or what changes it might be seeking.

A representative for Elliott declined to comment. A representative for UDG wasn’t immediately available for comment.

Clayton Dubilier agreed to acquire UDG this month for 2.61 billion pounds ($3.2 billion) in cash, a roughly 22% premium at the time. Shares in the company rose 1.8% to 1,064 pence at 3:53 p.m. Monday in London, above the offer price of 1,023 pence per share.

UDG’s largest shareholder said last week in an emailed statement it was opposed to the terms of the deal, arguing it is “opportunistic and undervalues UDG.” Allianz Global Investors, which owns an 8.6% stake in the company, said it was open to further discussions but believed the offer price doesn’t reflect the value of UDG’s future potential.

“Having come through the trials of the pandemic with a strong balance sheet, AllianzGI believes UDG can realize the potential of recent acquisitions, consider further inorganic opportunities and improve the efficiency of its capital structure,” it said.

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