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Jan
14

Coventry-First Health – last barriers to the deal

January 28th is the date set for the First Health shareholder vote on the proposed acquisition by Coventry. With regulatory approvals out of the way, the vote should be a formality.
The last remaining obstacle was the outstanding shareholder lawsuit demanding more information about the deal, which executives get what benefits, and may even lead to a public airing of FH’s financial adviser.
The reasoning behind the lawsuit appears to be FH shareholders’s (and Coventry owners as well) objecting to FH executives’ payouts under the deal, coupled with a perception that FH may not have marketed itself effectively.
Regardless, the deal is done. The next, and much more interesting phase, will be to see what Tom McDonough, the Coventry exec tasked with managing the acquistion, does next.


Joe Paduda is the principal of Health Strategy Associates

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