Chairman Makes Bid For Senior Products Company

The Universal American board notes in an announcement of the receipt of the offer that Barasch and other members of his team now hold about 48% of the company's outstanding shares of common stock.

The Barasch team still has to obtain financing for its offer, and the deal also would be subject to the negotiation and execution of definitive transaction agreements on "mutually acceptable terms," according to the Universal American board.

The Universal American board says it has established a special committee consisting of 4 independent directors to evaluate the Barasch proposal and "any strategic alternatives to the proposal that may be available to Universal American."

A unit of Citigroup Inc., New York, will be the special committee's financial advisor.

"Universal American cautions its shareholders and others considering trading in its securities that its board of directors has just received the proposal, and that the process of considering the proposal is only in its beginning stages," the board says. "The special committee has not made a determination whether a transaction is in the best interests of Universal American and its shareholders or whether Universal American should pursue any available alternative to the proposal."