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Biotech / Medical : Oxford Health Plan (OXHP) -- Ignore unavailable to you. Want to Upgrade?

To: william liao who wrote (1074)	2/20/1998 9:27:00 AM
From: john douglas	Read Replies (1) \| Respond to of 2068

William, you need a subscription to get into the WSJ interactive web site. But here's a summary from Yahoo ... Friday February 20, 2:47 am Eastern Time Texas Pacific, KKR adjust terms of Oxford deal-WSJ biz.yahoo.com John

To: william liao who wrote (1074)	2/20/1998 4:05:00 PM
From: Jim Yen	Read Replies (1) \| Respond to of 2068

Here is the full WSJ article: ------------------------------------------------------------------ Texas Pacific, KKR Revise Terms Of Their Offer for Oxford Health By Leslie Scism and Ron Winslow Staff Reporters of The Wall Street Journal Texas Pacific Group and Kohlberg Kravis Roberts & Co. have adjusted terms of their $600 million rescue package for Oxford Health Plans Inc., apparently to fend off a rival bid from another investment group, people familiar with the matter said. The exact nature of the changes couldn't be determined, but the revised terms were more attractive to Oxford than the original structure and were enough to keep the deal between the Norwalk, Conn., managed-care company and Texas Pacific and KKR on track, according to people familiar with the situation. Oxford's board authorized management to conclude negotiations with the Texas Pacific-KKR group, but no transaction has yet been finalized, these people said. The competing offer is a sign that some investors believe that the beleaguered company's woes represent a profitable opportunity and that the problems can be solved. The rival bid included a requirement that Oxford hire Daniel D. Crowley, former chairman, president and chief executive officer at Foundation Health Corp., as Oxford's CEO. Mr. Crowley had emerged as an early candidate for the post, but people familiar with the situation say that the board has been leaning in favor of Norman Payson, a physician and former CEO of Healthsource Inc., for more than a week. Dr. Payson is linked to the Texas Pacific-KKR offer. Like Oxford's chairman, Stephen F. Wiggins, he is viewed as a visionary and motivator, and he built tiny New Hampshire based Healthsource into an industry force. But Healthsource was hit by rising health-care costs and contracting problems in 1996, and the company was sold to Cigna Corp. last year. The alternative group believed Dr. Payson lacked turnaround experience needed at Oxford and backed Mr. Crowley, who now heads Dynamic Healthcare Solutions, a venture-capital firm in Sacramento, Calif. Mr. Crowley's resume credits him with engineering a turnaround at Foundation, which he headed for eight years before it merged last year with another California HMO to become Foundation Health Systems Inc. But Oxford's board viewed Mr. Crowley's blunt style as a drawback in the plan put forward by the rival group, a person familiar with the matter said. That group's members are Liberty Partners, a New York leveraged-buyout firm; Insurance Partners L.P., a New York investment fund specializing in insurance; Cerebus Partners L.P., an investment fund specializing in distressed securities; and Madison Dearborn, a Chicago investment firm. Insurance Partners' backers include Texas investor Robert Bass, Chase Manhattan Corp. and Zurich Insurance Group. The parties either declined to comment or couldn't be reached. Steven Lipin contributed to this article.