Value Health Accepts All-Cash Offer

Value Health said it rejected a $1.2-billion stock-swap acquisition offer from MedPartners after Columbia/HCA revised its bid for the managed-care company to $1.1 billion in cash. Although the new Columbia deal is worth less than the offer from MedPartners, Value Health said it prefers the all-cash deal because it’s less risky. Columbia initially agreed to buy Avon, Conn.-based Value Health with what had been $1.3 billion worth of its stock. But Columbia shares have slid in recent weeks, causing its original offer to be worth $18.20 per share. The new cash agreement would pay $20.50 per share. The MedPartners offer is worth $21.82 a share based on Tuesday’s prices. On the NYSE, Columbia stock rose $2.75 to close at $34.125, Value Health climbed $2.25 to $20 and Birmingham, Ala.-based MedPartners slipped 75 cents to $19.625.