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Amerigroup delays WellPoint deal vote by two weeks
October 3, 2012 / 2:05 AM / 5 years ago

Amerigroup delays WellPoint deal vote by two weeks

(Reuters) - Amerigroup Corp AGP.N said it has delayed a stockholder approval vote on the $4.5 billion sale of the health insurer to WellPoint Inc WLP.N by two weeks after shareholders sued Amerigroup’s board.

Amerigroup has now scheduled the vote for October 23, it said in a regulatory filing.

In August, shareholders of Amerigroup sued its board, contending its advisers at Goldman Sachs had a “hopelessly conflicted” role in the company’s pending sale to WellPoint.

Goldman, according to the lawsuit, pushed Amerigroup toward a quick deal with WellPoint over a more lucrative merger with another unnamed company.

WellPoint announced the deal to buy the rival health insurer in July, betting on an expansion of the U.S. government’s health plan for the poor soon after the U.S. Supreme Court upheld President Barack Obama’s healthcare law.

Shares of Amerigroup closed at $91.56 on Tuesday on the New York Stock Exchange.

Reporting by Avik Das in Bangalore; Editing by Chris Gallagher

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