McDonnell Joins Group Seeking Health-Care Firm

McDonnell Douglas announced Wednesday it has joined a group led by Dr. Leroy A. Pesch that is trying to complete a leveraged buy-out of Republic Health Corp. of Dallas, a deal reportedly worth $288 million.

Republic, one of the nation’s largest investor-owned health corporations, owns or manages 90 hospitals or medical facilities with 87,000 beds in 24 states.

The St. Louis aerospace and information systems corporation and Pesch would be the two largest shareholders if the buy-out of Republic is successful.

Pesch and McDonnell Douglas are the largest stockholders of Republic. Reed said McDonnell Douglas owns about 13% of the health company’s shares. Other members of the group attempting the buy-out include James E. Buncher, chairman and chief executive of Republic, and James W. McAtee, the health company’s chief financial officer.

A statement issued by McDonnell said Pesch previously submitted a proposal to Republic’s board offering $18.50 in cash for each share of common stock and $55.50 in cash for each share of preferred stock.