Magellan Health Services Inc

Magellan Health Services Inc. agreed to sell its psychiatric hospitals to Crescent Real Estate Equities Co. for $400 million. The 92 hospitals will be run by a joint venture of Magellan and an affiliate of Crescent, a New York-based real estate investment trust controlled by Texas billionaire Richard Rainwater. Last year, Rainwater and his wife, Darla Moore, bought a 12% stake in Magellan, the largest provider of managed-care mental health services.

Magellan Health Services Inc. warned that unexpectedly high mental health care costs after Sept. 11 will result in a loss in the fourth quarter, sending its shares down more than 30%. Magellan, the nation's largest managed-care mental health and substance abuse treatment company and a major provider of employee assistance programs, said the need for psychiatric care and counseling soared after the terrorist attacks.

Magellan Health Services Inc. warned that unexpectedly high mental health care costs after Sept. 11 will result in a loss in the fourth quarter, sending its shares down more than 30%. Magellan, the nation's largest managed-care mental health and substance abuse treatment company and a major provider of employee assistance programs, said the need for psychiatric care and counseling soared after the terrorist attacks.

Magellan Health Services Inc. agreed to sell its psychiatric hospitals to Crescent Real Estate Equities Co. for $400 million. The 92 hospitals will be run by a joint venture of Magellan and an affiliate of Crescent, a New York-based real estate investment trust controlled by Texas billionaire Richard Rainwater. Last year, Rainwater and his wife, Darla Moore, bought a 12% stake in Magellan, the largest provider of managed-care mental health services.

Aetna Inc. said Tuesday that it will restate earnings for 1998 and the first three quarters of 1999 after a U.S. Securities and Exchange Commission review. Changes related to Aetna's 1997 sale of Human Affairs International Inc. to Magellan Health Services Inc. will reduce profit from operations by $10 million each for the first three quarters of 1999, the insurance company said. A similar reduction is expected for the fourth quarter.

Toys R Us Inc. on Monday reported a 75% plunge in profit for its second quarter as sales cooled and its year-old Web site continued to drain earnings. Still, the nation's largest toy retailer beat analysts' expectations by a penny. The results were encouraging to some on Wall Street, who said they are optimistic that the company is on the right track with new initiatives such as last week's partnership with dominant online retailer Amazon.com to jointly sell toys online.