Amid reports some shareholders are opposed to
the deal, Centene and WellCare Health Plans set a date of June 24th for shareholders to approve of their merger, the two
health insurers said in a filing with the Securities & Exchange Commission
Thursday.
The joint proxy filing of the two health
insurance companies comes in the wake of reports that hedge funds are unhappy
with the deal and Humana is interested in a friendly takeover of Centene.
Reuters reported earlier this month
that two hedge funds may oppose Centene's WellCare acquisition.
It’s unclear whether Humana’s interest in Centene is serious because the
Louisville-based insurer hasn't talked publicly since reports surfaced about
its potential interest in Centene.
Centene last month announced plans to buy
WellCare for more than $15 billion in a deal that would expand the business of
administering Medicaid benefits for poor Americans as well as private Medicare
Advantage coverage.
On May 6, Centene chairman and chief
executive Michael Neidorff wrote a letter saying
the insurer was forging ahead with the WellCare deal and the regulatory process
was well underway.
“We have already started seeking the necessary regulatory
approvals that we’ll need to complete the transaction,” Neidorff said in a letter to Centene
employees. “We look forward to working through the transaction
process so we can bring the benefits of our combined company to all of our
stakeholders."
Centene’s WellCare transaction would put the
combined company in all 50 states, creating a larger player in the business of
administering Medicare Advantage. Centene is already sells Medicaid benefits in
contracts with many states and is the largest provider of individual coverage
under the Affordable Care Act, offering subsidized Obamacare in 20 states.
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