Stock slump puts mergers on the line: Humana deal is called off
Article Abstract:
Humana Health Care Plans Inc. has withdrawn from its $3.2-billion sale agreement to United HealthCare following a 28% fall in United stock on August 6, 1998, reducing the stock swap deal by $2.2 billion. The agreement had been announced in May 1998. The drop is seen as a reaction by investors to United's unexpected $900 million quarterly charge. Analysts are raising some concern that falling stock prices could threaten other pending mergers. Low stock prices are likewise decreasing the number of potential acquirers.
Comment:
Withdrawns from its $3.2-billion sale agreement with United HealthCare following a 28% fall in United stock
Publication Name: USA Today
Subject: News, opinion and commentary
ISSN: 0734-7456
Year: 1998
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Experts divided on small caps
Article Abstract:
Mutual funds that invest in small-cap companies have been lagging behind their large-cap counterparts for years, prompting some experts to say that small-cap investing does not make sense. Some experts, however, say that mutual funds who ignore small-cap companies may miss out on big opportunities. While 1998 saw huge gains made by large-cap funds, proponents of small-cap investing remind investors of the cyclicality of the investment market.
Publication Name: USA Today
Subject: News, opinion and commentary
ISSN: 0734-7456
Year: 1999
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