SAN DIEGO and WOODLAND HILLS, Calif., July 2, 2015 /PRNewswire/ -- Shareholder
rights attorneys at Robbins Arroyo LLP are investigating the
proposed acquisition of Health Net, Inc. (NYSE: HNT) by Centene
Corp (NYSE: CNC). On July 2,
2015, the two companies announced the signing of a
definitive merger agreement pursuant to which Centene will acquire
Health Net. Under the terms of the agreement, Health Net
shareholders will receive $28.25 in
cash, and 0.622 shares of Centene for each share of Health Net they
own, the value of which is equivalent to $78.57 per share of Health Net.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/health-net-incorporated
Is the Proposed Acquisition Best for Health Net and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Health Net is undertaking a fair process to obtain
maximum value and adequately compensate its shareholders.
As an initial matter, the $78.57
merger consideration represents a premium of only 20.8% based on
Health Net's closing price on July 1,
2015. This premium is significantly below the average one-day
premium of nearly 44.4% for comparable transactions within the past
three years.
On May 4, 2015, Health Net
reported strong earnings results for its first quarter 2015. Total
revenues for the quarter were $3.9
billion, an increase of 28% from the first quarter of 2014.
GAAP net income for the quarter was $30.0
million, an increase of 4.2% over the first quarter of 2014.
Additionally, Health Net has beat consensus analyst estimates for
adjusted net income in every quarter for the past year, and beat
estimates for adjusted EPS in three out of the past four quarters.
In commenting on these results, Health Net President and Chief
Executive Officer Jay Gellert
remarked, "We are pleased that our strong 2014 performance is
continuing into 2015. Enrollment growth in Medicaid expansion and
the California exchanges remained
strong, we continued to experience moderate health care cost trends
and our administrative expense ratio reflected successful cost
management during a period of enrollment growth."
In light of these facts, Robbins Arroyo LLP is examining Health
Net's board of directors' decision to sell the company now rather
than allow shareholders to continue to participate in the company's
continued success and future growth prospects.
Health Net shareholders have the option to file a class action
lawsuit to ensure the board of directors obtains the best possible
price for shareholders and the disclosure of material
information. Health Net shareholders interested in
information about their rights and potential remedies can contact
attorney Darnell R. Donahue at (800)
350-6003, ddonahue@robbinsarroyo.com, or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law
firm represents individual and institutional investors in
shareholder derivative and securities class action lawsuits, and
has helped its clients realize more than $1
billion of value for themselves and the companies in which
they have invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
Logo -
http://photos.prnewswire.com/prnh/20130103/MM36754LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/robbins-arroyo-llp-acquisition-of-health-net-inc-hnt-by-centene-corporation-cnc-may-not-be-in-shareholders-best-interests-300108450.html
SOURCE Robbins Arroyo LLP