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

To: men mailman who wrote (1227)	3/4/1998 2:37:00 PM
From: Jim Yen	Respond to of 2068

Here are the paragraphs in the WSJ article which talks about Texas Pacific deal: ...................................................... But one red flag is that even the folks coming to Oxford's rescue are insisting on conditions that skeptics view as underscoring just how tenuous the company's financial health really is. Although Texas Pacific has agreed to pump $350 million in cash into the company, the check isn't even in the mail. The investor group won't actually make the contribution unless Oxford first can raise another $350 million in debt financing. And while Oxford Chairman Steven Wiggins already has stepped aside in favor of a new chief executive, Norman Payson, Dr. Payson will assume the top slot -- and invest $10 million of his own money in Oxford common shares -- only if Oxford can close the entire financing package. Until then he is acting merely as a consultant to the company. Moreover, Texas Pacific has exacted a lofty price for its contribution: It will receive annual dividends of 8% to 9% on the preferred stock it will acquire, siphoning some $30 million a year from Oxford coffers. The preferred carries warrants that can be converted into an equity stake of as much as 22.1%. But Texas Pacific has the right to reset the price for that conversion should Oxford shares fall further still by spring 1999. "That's an indication that [Texas Pacific] doesn't know where the bottom is," frets Douglas Sherlock of Sherlock Co., an HMO consulting firm in Philadelphia. Oxford officials, however, say not to worry. The HMO says it is "very close" to landing the extra $350 million in debt that will clear the way for the rest of the package to take effect. Moreover, Oxford says that it is wrong to read negative signs into the various conditions of its rescue package and that such terms are entirely normal. And though in the fourth quarter it spent $2 million more than it took in, the bulk of its reported losses were noncash and mostly one-time items. "There is not a cash problem at Oxford ," said Al Koch, the company's chief financial officer. A Texas Pacific spokesman added that any notion of the company's being in a cash crisis is "seriously misguided."

To: men mailman who wrote (1227)	3/4/1998 2:41:00 PM
From: men mailman	Read Replies (2) \| Respond to of 2068

Saw the article. I can't believe how 2 staffers of the WSJ have written up an article without 1 bit of NEW info. THIS IS OLD NEWS! A week old!!!!!!! I wonder why the timing to release it TODAY!!!! As to Ann Anderson, I wish she shorts more. all the better. It will fuel the fire on the upside. Or maybe the shorts are getting scared and wanted to cover some today so they planted this article. If you read closer you see many positive signs. ie: the company under Payson rebutting many mistruths, The fact that their are few competitors to Oxford, etc. Why this old news today? Once the deal is finalized this scare tactic will also be history. Yep!! should see 17 today. Shorters cover fast before you lose your shirts The cardio news today is reassuring.