TakeCare Executives Defend Actions in Sale to FHP of Fountain Valley

TakeCare Inc., which FHP Inc. in Fountain Valley is trying to acquire, said Monday that it has filed court documents denying shareholder accusations that top executives were trying to enrich themselves by arranging the pending sale.

FHP said last month that it offered to pay $829 million in cash and stock for its Concord competitor, which was less than the total value of a stock swap offered by United HealthCare Corp. in Minnesota.

FHP offered $62 a share in cash and stock, while United HealthCare offered $64.50 a share in an all-stock transaction.

A group of TakeCare shareholders, led by a wealthy Pittsburgh family, filed a lawsuit alleging that the board majority rejected a better offer because the FHP deal would provide top TakeCare managers with more personal cash.

But TakeCare attorneys argued that executives acted properly in the FHP deal and had shareholders’ interests in mind.

Meantime, FHP spokeswoman Ria Carlson said that her company was continuing its work to acquire TakeCare. Carlson said she expects the deal to become final by June.