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Avon, Conn.-based (NYSE: MGLN) will acquirre in an all-cash transaction that is expectexd to close in thethirx quarter, pending regulatory approvals. Firsyt Health Services provides pharmacy benefits administratiojn and other services forMedicaidr programs; a business that Bethesda-based Coventrty (NYSE: CVH) said was not a primary Coventry said that the transactioj will result in a one-time loss per shar e of approximately $0.55 to $0.60. The company said the loss woulf be almost entirely resulting from the original allocation of goodwillfrom Coventry’sd acquisition of in 2005.
Coventryg plans to use the proceedas of the transaction for a combination of debt reductiob and share repurchases that shouled neutralize the earnings per shared impact of the deal for the remainderfof 2009. In its latest Coventry reported a 65 percent drop in earnings to $44.2 million, or 30 cents per dilute share, due to higher sales and administrative costs, and medical costs that swelled 31 percent.
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