ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for charts Register for streaming realtime charts, analysis tools, and prices.

WellPoint to Acquire Rival Amerigroup (WLP, AGP)

Share On Facebook
share on Linkedin
Print

M&A activity continues to heat up in the third quarter. Earlier today, health insurer WellPoint Inc. (NYSE: WLP) announced that it agreed to acquire rival Amerigroup Corp. (NYSE: AGP) in a transaction valued at $4.46 billion.

The combination of WellPoint and Amerigroup would create a company that would serve over 4.5 million beneficiaries of state-sponsored healthcare plans, which includes Medicaid recipients in 19 states.

The agreement comes a few days after the Supreme Court upheld President Obama’s healthcare law.

Under the terms of the agreement, WellPoint would acquire Amerigroup for $92 per share in an all cash transaction. The transaction represents a premium of 43% over AGP’s closing price on Friday.

WellPoint CEO Angela Braly believes that the combination will create an industry leader in the government sector serving Medicaid and Medicare enrollees.

The acquisition is expected to be completed in the first quarter of 2013. WLP plans to fund the acquisition with existing cash, commercial paper and new debt.

Investors have cheered the deal, with WLP stock rising sharply in early trading today. At last check, WLP was up 4.16% to $62.40. AGP stock, meanwhile, is up more than 37% in early trading.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com