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BRIEFLY

Health

February 21, 1996|Times Staff and Wire Reports

WellPoint Announces Recapitalization Plan: WellPoint Health Networks said it has agreed to a financial restructuring with its majority shareholder, Blue Cross of California, that would make possible the creation of twin health-care charities with a combined endowment of about $3 billion. The two Woodland Hills-based companies have asked the state Department of Corporations to approve the recapitalization plan, which would pay each WellPoint shareholder $10 in cash and include a 2-for-3 reverse stock split of WellPoint common shares. As part of nonprofit Blue Cross' plan to convert to for-profit status, state regulators have required Blue Cross to dedicate its 80% stake in WellPoint to public charitable purposes. The proposed charities would be one of the nation's largest foundations devoted to health-care philanthropy.

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