WebMD, Quintiles talked about possible merger-WSJ
March 06, 2001 03:12:00 AM ET
NEW YORK, March 6 (Reuters) - Internet healthcare firm WebMD Corp. (HLTH) and Quintiles Transnational Corp. (QTRN) held talks as recently as January about a possible merger or acquisition, the Wall Street Journal reported in its online edition Tuesday.
The paper cited documents filed by Quintiles in a court dispute between the two companies over a data-sharing agreement.
Quintiles performs clinical trials and does marketing for pharmaceutical firms.
Citing an affadavit from Dennis Gillings, Quintiles's chairman and chief executive, the paper reported that WebMD and Quintiles discussed "potential business combinations" on Jan 11, when Gillings met WebMD CEO Martin Wygod.
"Most recently," Gillings's affidavit reportedly says, "Mr. Wygod has suggested that Quintiles should acquire WebMD."
Quintiles has not rejected Wygod's most-recent overtures, Gillings was reported as saying, but the talks have been "extremely preliminary", the paper quoted him as saying.
The companies declined to comment beyond their filings in the case, the paper said.
WebMD's filings say that its chairman, Michael Long, floated the idea of a possible business combination to Quintiles in December, the paper reported.
Long says in an affidavit that he suggested to Gillings that the companies consider a merger or joint venture, as a way of resolving a dispute over the scope of their strategic agreements signed last year, the paper said.
The agreements include a data-sharing pact, and another deal for the companies jointly to develop Internet products, it said.
Last week, WebMD said its agreement to provide Quintiles with medical and marketing data may violate privacy laws, adding that it will go to court to sever the pact.
© 2001 Reuters |
