NU Online News Service, April 26, 2004, 6:12 p.m. EDT – UnitedHealth Group Inc., Minnetonka, Minn., has offered $4.9 billion, or more than $3,500 per insured commercial health plan member, for Oxford Health Plans Inc., Trumbull, Conn.[@@]
The deal price includes $1.4 billion in cash and about $3.5 billion in UnitedHealth stock, Oxford says.
The deal is subject to approval by Oxford shareholders and many different regulators.
In the late 1990s, Oxford suffered through such serious financial and accounting woes that one securities analyst questioned whether any qualified bidder would offer to acquire the company at any price.
Since then, executives have turned Oxford around, and the company’s profits have soared.
Oxford is reporting $86.7 million in net income for the first quarter on $1.4 billion in revenue, up from $72.9 million in net income on $1.3 billion in revenue for the first quarter of 2003.
The company ended the latest quarter insuring the health of 1.4 million residents of Connecticut, New York and New Jersey and administering coverage for another 107,500 “tri-state” residents.
UnitedHealth has announced its offer just days after WellChoice Inc., New York, reported that it had ended its effort to acquire Oxford.