NU Online News Service, Oct. 2, 2:55 p.m. – Anthem Insurance Companies Inc., Indianapolis, says it may sell more securities than it had originally expected when it demutualizes.
The policyholder-owned health insurer filed a plan with Indiana insurance regulators in June that calls for converting the company to a stock charter.
Anthem, one of the biggest health insurers in the United States, said it would change charters; compensate the policyholder-owners for their loss of policy-based ownership by giving them the full, pre-conversion value of the company in cash, stock and policy credits; then raise cash by selling 29 million shares of common stock to the public.
Now, Anthem says it still expects to raise between $944 million and $1.1 billion by selling 29 million shares of common stock to the public for an estimated price of $33 to $37 per share.
But Anthem says it may also offer up to $230 million in "equity security units" along with the stock sold through the initial public offering, because of "the current unpredictable and volatile market conditions."
