UnitedHealth unit Optum and Change Healthcare to extend merger agreement to Dec. 31
UnitedHealth Group Inc. unit Optum and Change Healthcare said Tuesday they are extending their merger agreement to Dec. 31, and that Optum will pay a $650 million fee to Change Healthcare in the event the merger is blocked. Change Healthcare has committed to paying a $2.00 per share special cash dividend at or about the time of closing. "The extended agreement reflects our firm belief in the potential of our combination to improve health care, and in our commitment to contesting the meritless legal challenge to this merger," the companies said in a joint statement. In February, the Justice Department sued to stop Optum's $13 billion acquisition of Change Healthcare. The lawsuit, which was filed in the U.S. District Court for the District of Columbia by the Justice Department and attorneys general in Minnesota and New York, alleged that the deal would dampen competition among commercial health insurers and give UnitedHealth access to competitive data gathered by a tool used to process claims. The companies said Tuesday they share a vision for a simpler health system for patients, payers and providers and will detail the benefits of their proposed combination at a two-week trial scheduled to start Aug. 1. Change Healthcare shares were not active premarket but are down 1.1% in the last 12 months, while the S&P 500 has gained 14%.
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