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WellChoice in talks to buy Oxford Health

Health insurer WellChoice Inc. is negotiating to buy Oxford Health Plans Inc. in an all-stock deal to create a healthcare giant in the Northeast part of the United States, the Wall Street Journal said on Monday.
/ Source: Reuters

Health insurer WellChoice Inc. is negotiating to buy Oxford Health Plans Inc. in an all-stock deal to create a healthcare giant in the Northeast part of the United States, the Wall Street Journal said on Monday.

The exact terms of the deal are unknown, the Journal said, citing people familiar with the matter.

But WellChoice has considered offering Oxford shareholders a premium of about 25 percent, it added, citing one person familiar with the situation.

Oxford had a stock market capitalization of about $4 billion while WellChoice has a market capitalisation of about $3 billion.

The Journal said the advanced talks between the two had been going on for months but could end at any moment.

Representatives from the two companies were not immediately available to comment.