Shares of Magellan Health Inc. (MGLN - Get Report)  closed up Wednesday 11.43% to $72.45 on a Reuters report that said the healthcare management services company was facing pressure from hedge fund Starboard Value to sell itself.

Starboard Value is the company's third-largest institutional investor, according to Yahoo Finance, with an 8.64% stake representing a value of about $120.5 million. Starboard Value describes itself as a fund that "invests in deeply undervalued companies and actively engages with management teams and boards of directors to identify and execute opportunities to unlock value."

Magellan, which is advised by Goldman Sachs Group, is in the early stages of considering acquisition interest, though there is no certainty that a deal will materialize, according to the report. 

Year to date, before Wednesday's spike, Magellan Health had climbed more than 15%. However, over the past 12 months the stock has declined more than 33%. 

Representatives from Starboard didn't immediately return requests for comment.