Hedge fund Engaged Capital LLC is considering a take-private offer for Medifast Inc., Bloomberg News reported, citing people familiar with the matter.

Sources reportedly said the California-based activist investor, which owns 15% of the supplement company, has been in talks with banks and private equity firms to help finance a bid. Engaged Capital disclosed its stake in Medifast in November, saying the company was undervalued.

No decision has been finalized yet and Engaged Capital may not proceed with an offer, the sources reportedly added.

A representative for Engaged declined to comment, Bloomberg News reported. Meanwhile, a Medifast representative could not be reached for comment.

Shares of Medifast close up 1.6% at $105 on Dec. 23.