Pacificare

(PHSY)

soared 35% over five sessions as the company renegotiated a credit pact with a syndicate of about 50 banks. The health maintenance organization got a two-year extension on the $735 million credit facility as long as its able to raise an addition $250 million for debt repayment on its own. The company contributed the first $40 million on Thursday. Goldman Sachs subsequently upgraded the company to market outperform and set a target price of $32, saying its lenders might have seen the company's first quarter results before agreeing to the pact. The shares got a boost earlier in the week when the California Public Employees Retirement System dropped Pacificare from its HMO list. While the move will reduce Pacificare's revenue, the company said the contract wasn't a big money earner for it.

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