Although the sell-side community seemed surprised by WellPoint's (WLP)
decision to acquire 1-800 Contacts, it seems likely to me that there
are going to be quite a few more deals like this in the future. Health
insurance companies (or managed care organizations, if you prefer) are
realizing what banks realized long ago - there's just not enough growth
in the core market to meet Wall Street's bottomless appetite.
Consequently,
growing those businesses that lie outside of regulatory authority is
one of the few options left, and it's one that I expect WellPoint and
Unitedhealth (UNH) will pursue as aggressively as shareholder sentiment will tolerate.
Please click here for more:
More Non-Core Investments Almost Certain For WellPoint
No comments:
Post a Comment