Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : HBOC...Buy in here? -- Ignore unavailable to you. Want to Upgrade?

To: John Carragher who wrote (152)	7/16/1998 8:09:00 PM
From: John Carragher	Read Replies (1) \| Respond to of 341

Dow Jones Newswires -- July 16, 1998 HBO & Co. Shrs Dn On Continued Post-McKesson Jitters Dow Jones Newswires NEW YORK -- HBO & Co.'s (HBOC) shares fell 11% Thursday in another frenzied bout of trading spurred by confusion over why the company's merger talks with McKesson Corp. (MCK) ended without an agreement. As reported Wednesday, the two sides gave sharply different versions of what happened. HBO said its board refused to approve the transaction because of concerns it would slow down HBO's torrid earnings growth rate and because it opposed McKesson's demand that the replacement of the chairman or chief executive of the new entity require a two-thirds majority of the new board. McKesson is maintaining that the HBO board approved the deal Monday but that HBO later refused to proceed when the two sides couldn't agree to new terms after HBO's stock fell 11.2% Tuesday on rumors of a deal. McKesson also claims the two sides ran into a contract dispute regarding two HBO executives but that the issue was considered resolvable. HBO argues that there never was a contract dispute. HBO Chairman and Chief Executive Charles McCall told Dow Jones Thursday's decline in HBO's shares may have been caused by McKesson's claim - which was widely reported by the press - that the HBO board had approved the merger when in fact, McCall claimed, it hadn't. HBO's Nasdaq-listed shares slipped 3 23/32, or 11%, to 30 1/32 on volume of 26.8 million. Average daily volume is 3.6 million. McKesson's NYSE-listed shares fell 2 1/16, or 2.4%, to 85 1/16 on volume of 689,900. Average volume is 327,800. - Louis Hau; 201-938-5240; louis.hau@cor.dowjones.com Briefing Book for: HBOC \| MCK Return to top of page \| Format for printing Copyright c 1998 Dow Jones & Company, Inc. All Rights Reserved.