Amerigroup Did Not Conduct Competitive Sale
Amerigroup Corp., the government health-plan manager that agreed to be acquired by WellPoint Inc. for $4.9 billion last month, was able to secure a higher price after the U.S. Supreme Court upheld President Barack Obama’s health-care reform law in June.
Both companies hoped to conclude an agreement without waiting for the Supreme Court ruling, according to a preliminary proxy filed Aug 6. Talks broke down in mid-June over the allocation of regulatory risks relating to antitrust, state insurance and other approvals.
On June 25, after they restarted, price was also a sticking point, and WellPoint Chief Executive Officer Angela Braly asked to defer negotiations three days to wait for the Supreme Court’s decision.