UniHealth Reduces Its PacifiCare Holdings

UniHealth Foundation reduced its holdings in PacifiCare Health Systems Inc., the nation’s largest Medicare managed health care plan, to 10.8% from about 13.5%, according to a document filed with regulators Monday.

UniHealth sold 1 million shares of the Santa Ana health insurer on the open market last month for a total of $35.3 million, with prices ranging from $33.24 to $38.74 a share, according to the filing.

UniHealth, a California nonprofit organization, makes grants to “improve the health and well-being of individuals and communities within its service area,” the filing with the Securities and Exchange Commission said.

The organization sold shares “to provide additional liquidity” and “to further diversify its assets,” according to the filing.

The two entities had agreed in May 1999 that PacifiCare could repurchase as many as 5.91 million shares held by UniHealth. Last month, the agreement was modified to allow the foundation to sell up to 1 million shares on the open market. UniHealth now owns 3.7 million shares.

PacifiCare shares, which have lost more than half their market value in the last nine months, fell $1.56 to close at $31.94 on Nasdaq.