Coastal Physician Group announces resignation of board member.DURHAM, N.C.--(BUSINESS WIRE)--Aug. 6, 1996--Coastal Physician Group Inc. (NYSE NYSE See: New York Stock Exchange :DR), Tuesday announced that Richard Janeway, M.D., has resigned from the company's board of directors, due to a potential conflict of interest. Dr. Janeway informed the company that: "It has just come to my attention that an entity in which my employer has a significant financial interest, and in which I have a major influence as director, will bid to acquire one or more of the businesses that Coastal Physician Group Inc. has indicated is for sale under our restructuring plan. "I have not been personally involved in any such bid; however, the situation places me in a position of significant conflict of interest. My duties and responsibilities to my employer must be given primacy in this situation. To resolve this conflict, therefore, it is with regret that I inform you by this letter that I resign as a director of Coastal Physician Group Inc., effective as of the date of this letter." As previously announced, Coastal has adopted a Comprehensive Business Plan pursuant to which it will, among other things, dispose of a number of businesses, including its clinical operations in Florida, Maryland, New Jersey and North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. , its Preferred Provider Organization pre·ferred provider organization n. Abbr. PPO A medical insurance plan in which members receive more coverage if they choose health care providers approved by or affiliated with the plan. (PPO PPO abbr. preferred provider organization PPO Managed care Preferred provider organization, see there Infectious disease Pleuropneumonia-like organism, see there ) in North Carolina and its New York-based prepaid health services health services Managed care The benefits covered under a health contract plan for Medicaid recipients, so it may focus on its core businesses. Dr. Janeway did not indicate which businesses his employer, The Bowman Gray School of Medicine, might be interested in acquiring. The company had intended to nominate Dr. Janeway, age 63, for re-election at its 1996 annual meeting. The company intends to announce a replacement nominee shortly to fill the vacancy on its nine-member board. Coastal Physician Group Inc. is a diversified physician management company providing a broad range of health care and administrative services to physicians, hospitals, employers, managed care programs and other health care providers. Certain additional information: Coastal Physician Group Inc. will be soliciting proxies to elect directors at its 1996 annual meeting of stockholders. The following individuals may be deemed to be participants in such solicitations of proxies: Jacque J. Sokolov, M.D.; Robert V. Hatcher Jr.; Stephen D. Corman; John P. Mahoney, M.D.; Norman H. Chenven, M.D.; Joseph G. Piemont; Robert P. Borchert; Dennis I. Simon; and Bettina M. Whyte. As of May 31, 1996, Sokolov is the beneficial owner Beneficial Owner A person who enjoys the benefits of ownership even though title is in another name. Notes: For example, when shares of a mutual fund are held by a custodian bank or when securities are held by a broker in street name, the true owner is the beneficial of 263,423 shares of the company's common stock; Hatcher is the beneficial owner of 16,808 shares of the company's common stock; Corman is the beneficial owner of 10,138 shares of the company's common stock; Mahoney is the beneficial owner of 4,090 shares of the company's common stock; and Borchert is the beneficial owner of less than 100 shares of the companies common stock. Simon and Whyte are employees of Price Waterhouse LLP LLP - Lower Layer Protocol and have been appointed by agreement of Price Waterhouse and Coastal to be plan managers of the company's revitalization re·vi·tal·ize tr.v. re·vi·tal·ized, re·vi·tal·iz·ing, re·vi·tal·iz·es To impart new life or vigor to: plans to revitalize inner-city neighborhoods; tried to revitalize a flagging economy. plan. In connection with such agreement, the company has agreed to pay Price Waterhouse $70,000 per month for the services of the plan managers, and $46,400 per month for any additional Price Waterhouse personnel that may provide services under the agreement. The company also granted Price Waterhouse an option to purchase 50,000 shares of company common stock at a price of $7 7/8, which has not yet vested, and a separate option to purchase up to 50,000 shares of company common stock, which will vest at a rate of 10,000 shares each month for five months commencing May 15, 1996, at a strike price equal to the average closing price of the common stock 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. for the first 10 trading days In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. of each month prior to the vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: date. Steven M. Scott, M.D., Bertram E. Walls, M.D. and John A. Hemingway are also directors of Coastal, but are not expected to solicit proxies on behalf of the company. CONTACT: Coastal Physician Group Inc. Robert P. Borchert, 919/383-0355 |
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