WellPoint's Revised Offer for Blue Cross Blue Shield of Colorado Valued at $240 Million

Strategic Insights -

WellPoint Health Networks is finalizing a revised offer to acquire Blue Cross Blue Shield of Colorado, potentially increasing the value of the deal to $240 million. This revised offer is significantly higher than their initial bid and would see the creation of a charitable foundation with proceeds of at least $180 million. The acquisition process has been ongoing, with Blue Cross initially choosing WellPoint as its preferred bidder. However, negotiations stalled, and Blue Cross subsequently accepted an offer from Anthem Inc.

Key Takeaways:

  • WellPoint's revised offer for Blue Cross Blue Shield of Colorado is valued at $240 million, an increase of $40 million from their initial offer.
  • The acquisition would result in the creation of a charitable foundation with proceeds of at least $180 million, which is $40 million more than WellPoint or rival Anthem Inc. had previously guaranteed.
  • The company's cash offer would include an initial capital infusion to Blue Cross for as much as $60 million, with the remainder going to the foundation.
  • WellPoint was initially Blue Cross' first choice among three suitors, but negotiations fell through due to differences in offer details, prompting Blue Cross to accept an offer from Anthem Inc.
  • Anthem Inc. is paying $155 million in cash and $10 million in administrative services, with a guaranteed minimum of $140 million for the foundation.
  • The Blue Cross board will still consider WellPoint's revised offer despite already accepting Anthem's deal.

Statistics:

  • Revised offer value: $240 million
  • Initial offer value: $200 million
  • Proceeds for the charitable foundation: at least $180 million
  • Initial capital infusion to Blue Cross: up to $60 million
  • Cash payment from Anthem Inc.: $155 million
  • Administrative services from Anthem Inc.: $10 million
  • Minimum guaranteed proceeds for the foundation from Anthem's deal: $140 million

Sources:

  • [Source]

+ "WellPoint Believes Blue Cross Blue Shield of Colorado Could be Worth $240 Million, $40 Million More Than Its Last Offer"

+ Author: Michele Conklin News Staff Writer