WebMD Says Talks on Possible Sale Never Led to Any Formal Proposals
WebMD Health Corp. (WBMD), the Internet provider of medical information, said talks with potential buyers led to the conclusion that any proposed offers would be less than the market value of the company.
No formal proposals were ever received, the New York-based company said in a regulatory filing today. WebMD had said on Jan. 10 that it ended discussions that might have led to a possible sale. No potential buyers were named by the company.
WebMD initially contacted five potential purchasers during September and October after earlier receiving an expression of interest from a private equity firm, according to the filing. Seven potential private equity buyers received due diligence materials on the company. Based on talks with the possible bidders, WebMD concluded any formal proposals would be less than the market price of the shares outstanding.
“Discussions with the potential private equity buyers never progressed to the stage where the private equity firms made a proposal,” WebMD said in the filing.
WebMD has no comment beyond the filing, said Kate Hahn, a company spokeswoman.
WebMD rose 1.8 percent to $26.76 at the close in New York.
Billionaire investor Carl Icahn, who owns or controls about 12 percent of WebMD’s shares outstanding, yesterday called for the company to repurchase as much as $1 billion in stock through a Dutch action with $30 at the high end of the range. WebMD said today that its filing was in response to inquiries from Icahn and other investors.
Icahn didn’t return a call left at his office seeking comment.
Softbank Corp. (9984) wasn’t involved in the potential sales process, WebMD said. Tokyo-based Softbank Corp. may have been interested in WebMD, The New York Post reported Dec. 30, without saying where it got the information.
To contact the reporter on this story: Anna Edney in Washington at aedney@bloomberg.net.
To contact the editor responsible for this story: Adriel Bettelheim at abettelheim@bloomberg.net.
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