Wednesday February 4, 5:54 am Eastern Time
Oxford seeks financing, may sell stake- WSJ
NEW YORK, Feb 4 (Reuters) - Oxford Health Plans Inc is seeking to secure financing to shore up its capital base, the Wall
Street Journal said Wednesday in its electronic edition.
Citing people familiar with the situation, the newspaper said Oxford's efforts could result in the sale of a minority stake to
financial investors.
Representatives of would-be investors have been examining Oxford's books the newspaper said, but no transaction is
imminent.
Oxford is said to have about $450 million to $475 million in shareholder equity, the newspaper said, and is believed to be
looking for about $200 million.
One possible investor is Dynamic Healthcare Solutions, a venture-capital company recently formed by Daniel Crowley, former
president, chairman and chief executive of Foundation Health Corp, the Journal said.
Crowley may be interested in purchasing a stake in Oxford with the possibility of becoming CEO, the Journal said.
A spokesman for Dynamic Healthcare Solutions wouldn't confirm or deny the report, and Oxford declined to comment, the
newspaper said.
In addition, the Journal said Crowley's venture company recently looked at one project that, if it had come to fruition, would
have involved debt and equity financing of as much as $1 billion.
However, the Journal gave no indication that this project is connected to Oxford, and said the venture has looked at smaller
projects as well.
In addition, the Journal said an outright sale of Oxford hasn't been ruled out.
Aetna Inc (AET - news), however, isn't among the parties talking to Oxford about a possible investment, the newspaper said.
In recent days, takeover rumors have emerged surrounding Aetna and Oxford.
Another option for Oxford is to raise capital by borrowing, the Journal said.
Separately, the Journal said Oxford yesterday asked New York state insurance regulators to approve steep rate increasees for
55,000 customers who buy policies individually. |
