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Prudential unit near sale?
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January 14, 1998: 2:15 p.m. ET
Humana, WellPoint emerge as finalists for health-care business, report says
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NEW YORK (CNNfn) - Prudential Insurance Co. of America is reportedly close to selling its huge, yet unprofitable health-care business for as much as $1.5 billion.
Humana Inc. of Louisville, Ky., and WellPoint Health Networks Inc., based in Woodlands Hills, Calif., have emerged as finalists in an auction for the business, The Wall Street Journal reported Wednesday in its interactive edition.
Prudential is currently in talks on various terms, including the price, the report said, quoting "people familiar with the process."
A deadline has been set for later this month. Prudential has never confirmed the unit is on the chopping block, but Merrill Lynch was reportedly hired last fall to assist in the sale.
Prudential's health-care business has 4.7 million members in health maintenance organizations and other managed care networks in the 40 metropolitan areas it serves.
Humana, which shares more markets than WellPoint does with Prudential, appears to be the front-runner in the contest, according to the report. The acquisition would likely strengthen Humana's presence in Florida, Illinois, Texas and Missouri.
WellPoint, which operates primarily in the California market, is unwilling to pay more than $1.3 billion, the report said.
Humana declined to comment and WellPoint could not be reached for comment.
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