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.
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.
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More Non-Core Investments Almost Certain For WellPoint