This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

HLTH And WebMD To Merge In All-stock Deal


NEW YORK (AP) ¿ HLTH Corp. said Thursday it will complete its merger into health Web-site operator WebMD Health Corp. in an all-stock deal valued at about $1.2 billion.

The companies had agreed to combine in a $2.31 billion cash and stock deal in February 2008, but canceled the deal in October due to financial market turmoil. The companies did not want WebMD to be burdened with HLTH's debt. They said the combination will improve efficiency and add liquidity for WebMD shares.

HLTH owns about 80 percent of WebMD, or 48.1 million shares. Under the deal, each HLTH share will convert into 0.4444 shares of WebMD Class A stock. The company estimated the WebMD shares are being valued at $1.2 billion to $1.3 billion. WebMD Class B shares will be retired. HLTH shareholders will own about 80 percent of the combined company, which will keep the WebMD name.

The deal is expected to close by the end of the year. Martin Wygod, the chairman of WebMD and acting CEO and chairman of HLTH, will be chairman of the new WebMD. WebMD CEO Wayne Gattinella will be president and CEO of the company.

Stifel Nicolaus analyst George Askew said the merger values HLTH shares at $12.54, a premium of almost 7 percent over Wednesday's closing price of $11.76.

Shares of Elmwood Park, N.J.-based HLTH advanced 1.50 cents, or 12.8 percent, to close at $13.26, a 17-month high. Shares of New York-based WebMD added $2.11, or 7.5 percent, to $30.32.
Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
WBMD $61.37 -1.10%
HLTH $4.43 -3.30%
AAPL $93.21 -0.44%
FB $117.80 -0.22%
GOOG $701.26 0.80%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs