Centene circles WellCare

摘要

Centene, the acquisitive US healthcare insurer, is at it again, agreeing last week to buy wellcare health plans for a whopping US$17.2bn. The immediate reaction was not positive, as Centene shares tanked 5% on the day of the news due to concerns over hefty dilution from the cash and stock purchase. Barclays is backstopping the US$6bn cash component with US$8.35bn of committed financing. In addition to US$120 per share of cash, WellCare shareholders are receiving 3.38 Centene shares, taking the overall compensation to about US$305 based on Centene's price of US$54.85 on Tuesday. After Centene's selloff Wednesday and US$52.12 per share close, thatvalue fell to about US$296.