NU Online News Service, May 30, 12:45 p.m. – Cobalt Corp., Milwaukee, says its investment bankers have set a price of $18 on 2.6 million shares of stock from American Medical Security Group Inc., Green Bay, Wis., that it hopes to sell through a secondary public offering.
Cobalt, the holder of the Blue Cross and Blue Shield licenses for Wisconsin, took its current name in March 2001, when it succeeded at converting the entire company to for-profit status.
Cobalt turned American Medical Security Group Inc., Green Bay, Wis., a publicly traded company that sells individual, family and small group major medical coverage throughout the United States, into a separate entity in 1998. A Cobalt subsidiary still owns 45% of American Medical’s shares.
Cobalt negotiated an agreement earlier this year to raise $18 million by selling 1.4 million American Medical shares back to American Medical.
Cobalt now plans to realize $47 million in additional gains through the 2.6-million-share secondary offering.
The lead underwriters for the offering are CIBC World Markets Corp., New York; Robert W. Baird & Company, Milwaukee; and Stifel, Nicolaus & Company, St. Louis.