Foxmeyer Health Corp

McKesson Corp. said Friday that it agreed to buy FoxMeyer Health Corp.'s ailing drug unit for $400 million, including $290 million in debt, in an effort to expand its U.S. pharmaceutical distribution business. FoxMeyer placed its FoxMeyer Drug Co. unit in Chapter 11 bankruptcy protection in August after drug makers cut credit and a planned sale to New Jersey investor William Taggart fell through.

Washington Mutual Inc. agreed to buy some of the assets of National Australia Bank Ltd.'s HomeSide Lending Inc. unit for $1.9 billion to expand its mortgage business. The HomeSide purchase gives Washington Mutual 2 million customers, 2,700 staff and offices in Jacksonville, Fla., and San Antonio. Melbourne-based National Australia will retain HomeSide's troubled mortgage portfolio, although Washington Mutual will provide the services on those loans, such as processing and escrow payments.

FoxMeyer Health Corp. said it is suing McKesson Corp. of San Francisco and a dozen major pharmaceutical manufacturers for allegedly conspiring to drive its FoxMeyer Drug Co. unit out of business. In the suit filed in U.S. District Court in Texas, closely held Carrollton, Texas-based FoxMeyer seeks compensatory damages of more than $400 million and punitive damages that could exceed $1 billion.

FoxMeyer Health Corp. said it is suing McKesson Corp. of San Francisco and a dozen major pharmaceutical manufacturers for allegedly conspiring to drive its FoxMeyer Drug Co. unit out of business. In the suit filed in U.S. District Court in Texas, closely held Carrollton, Texas-based FoxMeyer seeks compensatory damages of more than $400 million and punitive damages that could exceed $1 billion.

McKesson Corp. said Friday that it agreed to buy FoxMeyer Health Corp.'s ailing drug unit for $400 million, including $290 million in debt, in an effort to expand its U.S. pharmaceutical distribution business. FoxMeyer placed its FoxMeyer Drug Co. unit in Chapter 11 bankruptcy protection in August after drug makers cut credit and a planned sale to New Jersey investor William Taggart fell through.

Washington Mutual Inc. agreed to buy some of the assets of National Australia Bank Ltd.'s HomeSide Lending Inc. unit for $1.9 billion to expand its mortgage business. The HomeSide purchase gives Washington Mutual 2 million customers, 2,700 staff and offices in Jacksonville, Fla., and San Antonio. Melbourne-based National Australia will retain HomeSide's troubled mortgage portfolio, although Washington Mutual will provide the services on those loans, such as processing and escrow payments.

Davstar Industries Ltd. said Thursday that health products distributor FoxMeyer Health Corp. has loaned it $1 million, secured by new convertible notes, and has agreed to invest an additional $4 million in Davstar convertible preferred stock. Texas-based FoxMeyer also has agreed to distribute Davstar's urology products through its national network of Health Mart pharmacies.

Phar-Mor Inc. scrapped its plan to buy ShopKo Stores Inc. as skepticism about combining the discount chains pushed down Phar-Mor's stock. The retailers said in September that they would form a new company, Cabot Noble Inc., in a transaction valued at about $1 billion in stock and assumed debt. The value had fallen to about $870 million with the 38% drop in Phar-Mor's stock.

McKesson Corp. settled a lawsuit that alleged the drug distributor conspired to drive a unit of Avatex Corp.'s predecessor out of business. Avatex disclosed settlement of the 1997 lawsuit in a Securities and Exchange Commission filing. The Dallas-based company, previously known as FoxMeyer Health Corp., accused McKesson of helping to push FoxMeyer Drug Co. into bankruptcy so the larger firm could acquire it. McKesson bought the FoxMeyer unit in 1996. Avatex will retain $2.

McKesson Corp. said Friday that it agreed to buy FoxMeyer Health Corp.'s ailing drug unit for $400 million, including $290 million in debt, in an effort to expand its U.S. pharmaceutical distribution business. FoxMeyer placed its FoxMeyer Drug Co. unit in Chapter 11 bankruptcy protection in August after drug makers cut credit and a planned sale to New Jersey investor William Taggart fell through.

McKesson Corp. said Friday that it agreed to buy FoxMeyer Health Corp.'s ailing drug unit for $400 million, including $290 million in debt, in an effort to expand its U.S. pharmaceutical distribution business. FoxMeyer placed its FoxMeyer Drug Co. unit in Chapter 11 bankruptcy protection in August after drug makers cut credit and a planned sale to New Jersey investor William Taggart fell through.

Urohealth Systems Inc., the Newport Beach company that has relied heavily on its stock to carry out an aggressive acquisition program, is pausing to refuel. The company, whose chief executive, Charles A. Laverty, has spearheaded its accumulation of seven medical device concerns in the last year, on Thursday filed a plan to sell 5 million shares of common stock. Half of the shares sold would be offered by two large shareholders.