Amerigroup Sells Subsidiary and 2 Stocks Enjoying 52-Week Highs
Amerigroup Corporation’s (NYSE:AGP) divestiture of its subsidiary, Amerigroup Virginia, satisfies the objections of the Justice Department over WellPoint’s (NYSE:WLP) proposed purchase of Amerigroup; the Department had believed that the originally proposed merger would have substantially weakened competition in the provision of Medicaid managed care plans in Northern Virginia. Amerigroup will sell Amerigroup Virginia to the Inova Health System Foundation, and the Department duly closed its inquiry into the sale of the subsidiary, permitting the parties to proceed to finalize their transaction. Without the divestiture, WellPoint’s proposed acquisition of Amerigroup would have resulted in monopoly in Medicaid managed care in the counties of Arlington, Culpeper, Fairfax, Fauquier, Frederick, Loudon, Prince William, Rappahannock and Warren, along with the cities of Alexandria, Falls Church, Fairfax and Manassas Park. Shares closed up 0.1 percent on the day at $91.77, having been traded in a 52-week range of $52.79 to $91.75.
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BankAtlantic Bancorp’s (NYSE:BBX) BBX Capital Corporation and BFC Financial Corporation (BFCF) report that BBX Capital will be involved in the funding of BFC’s recently announced purchase of Bluegreen Corporation (NYSE:BXG). BFC, through its wholly-owned subsidiary, Woodbridge Holdings, now owns about 54 percent of Bluegreen’s outstanding Common Stock and has reached an agreement with Bluegreen pursuant through which the latter will merge with a subsidiary of Woodbridge, with the shareholders of Bluegreen receiving $10 per share in cash. Upon the close of the transaction, Bluegreen will become a direct wholly-owned subsidiary of Woodbridge. BBX Capital’s board, upon recommendation of a special committee of independent directors, okayed plans to supply equity of about $60 million in cash to Woodbridge and to create a promissory note in Woodbridge’s favor in the principal amount of around $11.75 million, for which in return, BBX will receive an approximate 46 percent common equity interest in Woodbridge. BankAtlantic shares closed up 5.41 percent on the day at $7.01, and have been traded in a 52-week range of $1.82 to $6.75.
Computer Sciences Corporation (NYSE:CSC) chooses Doug Tracy, 52, as its Chief Information Officer. Tracy previously led global information tech operations for Dana Holding Corporation (NYSE:DAN) and Rolls-Royce. Shares closed up 1.65 percent on the day at $38.21, having been traded in a 52-week range of $22.19 to $38.14.