PacifiCare merger rumors drive up stock

Friday, Nov. 5, 1999 | 11:30 a.m.

THE ASSOCIATED PRESS

SANTA ANA, Calif. -- PacifiCare Health Systems Inc. stock closed Thursday at $54.18, up $8.50 or nearly 19 percent, on the Nasdaq Stock Market as rumors of a possible sale reached investors.

PacifiCare is a big managed care operator in Las Vegas. Its stock moved on the merger rumors and on a series of unrelated announcements.

PacifiCare said Thursday that president and chief operating officer Jeff Folick is moving into a less active role with the company and will serve as executive vice president.

He will be responsible for the Specialty Services division, the company said.

In another management change, the company said chief executive officer Alan Hoops will resume the role of president and serve as a board member.

Hoops, who had been board chairman, is being replaced in that role by David Reed, PacifiCare said. Reed has been a director of the company for seven years and participates on its audit committee.

Also, PacifiCare said Thursday it plans to repurchase up to 12 million of its 43.5 million outstanding shares of common stock.

It already has repurchased 2.46 million shares, said the managed health-care company, which is based in Santa Ana, Calif.

Additionally, PacifiCare said it plans to purchase Harris Methodist Health Plan, based in Arlington, Texas, from Texas Health Resources for an undisclosed amount.

The transaction is expected to close in about 90 days.