Medical Care America to Sell Services Unit

THE JOURNAL RECORD, January 18, 1994 | Go to article overview

Medical Care America to Sell Services Unit


DALLAS (AP) _ Medical Care America Inc. said Monday it has agreed to sell the home infusion services unit it acquired only 1 years ago to Caremark International Inc. for about $175 million in cash.

The company plans to use proceeds from the sale, along with up to $50 million of its own cash, to buy back up to 7 million of its 36.6 million outstanding shares in a tender offer priced at $26 to $29 per share, senior vice president Jonathan Bond said.

The deal, the latest in the fast-evolving health care industry, will beef up Caremark's home care business while allowing Medical Care to shed a distracting acquisition.

Donald Steen, Medical Care's president and chief executive, said the move "will allow us to focus resources on our surgery center business."

The sale also caps months of grumbling and speculation among some major Medical Care shareholders, who were angered when the company rebuffed a $950 million takeover bid late last year.

"It's just an effort to enhance shareholder value, and they certainly have indicated a desire to see us do that," Bond said. Among shareholders reportedly irked by the decision were members of Fort Worth's wealthy Bass family.

Last October, Dallas-based Medical Care rejected the bid from surgery center operator Surgical Care Affiliates Inc. Medical Care later said it would consider other offers and opened its books to prospective suitors. Bond said Medical Care received other bids, but he would not comment on them.

Under accounting rules, the deal with Caremark apparently would halt the type of stock-swap merger Surgical Care had sought with Medical Care, at least for several months.

"Our lawyers are researching that," said Joel Gordon, Surgical Care's chairman and chief executive. He said a confidentiality agreement kept him from commenting further on the deal but added that his company has "always been interested" in Medical Care.

Analysts said the proposed sale would let the company to remain independent, appease shareholder critics and buy time. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Medical Care America to Sell Services Unit
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.