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Article: Formidable foe; CalPERS fights to block WellPoint-Anthem merger.(The Week In Healthcare)(California Public Employees' Retirement System, WellPoint Health Networks, Anthem Alliance Health Insurance Co.)
- Article from:
- Modern Healthcare
- Article date:
- June 21, 2004
- Author:
CopyrightCOPYRIGHT 2004 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Laura B. Benko
In perhaps the biggest threat yet to Anthem's planned takeover of WellPoint Health Networks, the nation's largest public pension fund vowed last week to fight the $16 billion deal, citing excessive executive pay packages that could harm patient care and compromise shareholder value.
The California Public Employees' Retirement System-which owns about 722,000 WellPoint shares and 613,000 Anthem shares-announced last week that it would call on other major stockholders to oppose the merger on the grounds that it would trigger up to $607 million in compensation for Thousand Oaks, Calif.-based WellPoint's top executives. Shareholders of ...