NU Online News Service, Jan. 24, 10:09 a.m. – The Wisconsin United for Health Foundation Inc., Milwaukee, plans to sell 5 million shares of the stock of Cobalt Corp., Milwaukee.
Cobalt, the company that holds the Blue Cross and Blue Shield licenses for Wisconsin, gave the stock to the foundation in 1999, when it converted to a stock charter from a nonprofit charter.
Under Wisconsin law, a nonprofit corporation holds its assets in trust for the people of the state. Nonprofits must compensate the people when they convert nonprofit assets to for-profit use.
Cobalt compensated the people by contributing stock to the Wisconsin United foundation, a charity that supports public health programs developed by the University of Wisconsin Medical School and the Medical College of Wisconsin.
After Wisconsin United sells the first 5 million Cobalt shares, it will continue to own 26 million shares, or 63% of Cobalt’s outstanding common stock, Cobalt says.
The offering is being managed by UBS Warburg L.L.C., New York, and Salomon Smith Barney Inc., New York.