Oct 4 Proxy advisory firms Institutional
Shareholder Services Inc and Glass Lewis & Co on Thursday
recommended that Amerigroup Corp stockholders approve
the $92-per-share cash offer from larger healthcare company
The shareholder vote on the $4.5 billion deal will be held
Oct. 23, Amerigroup said in a statement.
The vote had been set for Oct. 9 but was moved as part of a
class-action lawsuit settlement, according to a regulatory
filing on Tuesday.
Shareholders had filed suit against Amerigroup, WellPoint
and Goldman Sachs Group Inc alleging that Goldman,
Amerigroup's financial adviser, was "hopelessly conflicted" and
did not get the company the best price.
According to the Tuesday filing, WellPoint and Amerigroup on
Tuesday reached an agreement with shareholders to reduce the
break-up fee on the deal to $97 million from $146 million.
Amerigroup also agreed to delay the stockholder meeting and
publicly state that it was prepared to receive and consider in
good faith any inquiries and superior proposals.
In July, WellPoint announced a deal to buy Amerigroup as
part of a bet on an expansion of the U.S. government's health
plan for the poor. The companies said last week
that they expect the deal to close in the fourth quarter.
On Thursday morning, shares of Amerigroup were trading
slightly under the offer price at $91.60 on the New York Stock
Amerigroup said it would not release its third-quarter
earnings because of the pending acquisition.