AFTER A YEAR, 'WE'RE DONE' ANTHEM JOINS WITH WELLPOINT.Byline: Evan Pondel Staff Writer Anthem Inc. and WellPoint Health Networks Inc. said Tuesday that they had completed their $16.5-billion merger after Georgia's insurance commissioner approved the deal earlier in the day. The transaction - creating the nation's largest health plan - required both companies to clear more than a year's worth of regulatory hurdles. The combined companies will be renamed WellPoint Inc., and serve approximately 28 million medical members through Blue Cross, Blue Shield Blue Shield A US not-for-profit health care insurer that is a reimbursement intermediary for physicians. Cf Blue Cross. and non-Blue plans in more than 13 states. ``This merger enables us to increase our value to be better able to hold down our costs through stepped up technology investments,'' Larry Glasscock, president and chief executive officer of the newly formed WellPoint Inc., said during a press conference Tuesday afternoon. Under the terms of the deal, shareholders of Thousand Oaks-based WellPoint will receive $23.80 in cash and one share of Anthem common stock for each WellPoint share. The stock will begin trading today on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol WLP WLP WebLogic Portal (Bea Systems) WLP Wafer Level Packaging WLP Women's Learning Partnership (Bethesda, MD) WLP Workplace Learning & Performance WLP World Library Partnership, Inc. . As for the deal's effect on consumers, it will help ``slow the rate of increase of premiums,'' Glasscock said. ``And we plan to do much more.'' Such is the case in Georgia, where Insurance Commissioner John Oxendine John Oxendine is the current Commissioner of Insurance of the U.S. state of Georgia. Oxendine, a Republican, was first elected in 1994 and reelected in 1998, 2002, and 2006. Biographical Information Oxendine is the son of Gwinnett Superior Court Judge James W. refused to approve the merger unless the companies increased their investment in the state. The Georgia official signed off on the deal Tuesday, only after the companies agreed to investments that will provide more than $100 million over two decades for rural health care. Oxendine followed the lead of California Insurance Commissioner California Insurance Commissioner is an elected executive office position in California who is in charge of the California Department of Insurance. The current Insurance Commissioner is Steve Poizner. John Garamendi John Raymond Garamendi (born January 24, 1945) is a U.S. politician and a member of the Democratic Party. He became the 46th Lieutenant Governor of California on January 8 2007. , who also rejected the deal until the companies agreed to invest more than $200 million in the state's health care system. Other states, including Nevada, Texas Nevada is a city in Collin County, Texas, United States. The population was 563 at the 2000 census. First settled in 1835 by John McMinn Stambaugh and named McMinn Chapel and Wisconsin, did not ask for further concessions, much to the relief of the investment community. ``We're done,'' said Adam Miller Adam Wain Miller (born November 26, 1984, in Plano, Texas), is a right handed pitcher who is currently a top prospect in the Cleveland Indians organization. He started the 2006 season as a starting pitcher with the Double A Akron Aeros. , analyst with Williams Capital Group in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . ``It's a fair deal, and now the issue will be how the management team comes together.'' Leonard Schaeffer, the chief executive officer and chairman of the former WellPoint, will now serve as chairman of the new company. Known as being more ``magnanimous'' than Glasscock, Miller said both executives ``know the business very well, and I feel very comfortable with their respective positions.'' In a prepared statement, Schaeffer characterized the deal as ``a great strategic fit and geographic fit.'' The new company will be based in Indianapolis and will employ approximately 38,000 people. There are no plans to close WellPoint's current headquarters in Thousand Oaks Thousand Oaks, residential city (1990 pop. 104,352), Ventura co., S Calif., in a farm area; inc. 1964. Avocados, citrus, vegetables, strawberries, and nursery products are grown. . When asked whether layoffs were pending, Glasscock said, ``I believe that the incredible majority of people will continue employment at our company.'' But analysts expect future departures as the merger sets in. Among other questions, consumer groups continue to denounce the hundreds of millions of dollars WellPoint executives stand to receive in compensation packages from the deal. ``This merger means executives get rich, but it doesn't improve access to health care for consumers,'' said Jerry Flanagan of the Santa Monica- based Foundation for Taxpayer and Consumer Rights. ``And when HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, executives are allowed to raid the health care system for their own enrichment, patients and small business owners lose.'' The foundation has also filed a lawsuit against WellPoint Health Networks, saying the company is liable for hundreds of millions of dollars in unpaid gross premium taxes. WellPoint shares advanced $2.08, to close at $125.10, while Anthem shares rose $1.73, to $101.33, Tuesday on the New York Stock Exchange. Evan Pondel, (818) 713-3662 evan.pondel(at)dailynews.com |
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