HLTH to buy back up to 80 million shares at lower price in revised tender offer

By Lisa Kerner

Charlotte, N.C., Oct. 22 - HLTH Corp. changed the terms of its recently announced tender offer.

Under the revised terms, HLTH will begin the offer next week to purchase up to 80 million shares, or 43%, of its common stock at a price per share of $8.80, an HLTH news release said.

Previously, HLTH announced it would purchase up to 50 million shares, or approximately 27%, of its common stock for $9.20 per share.

HLTH's common stock closed at $7.79 (Nasdaq: HLTH) on Tuesday.

The tender offer is conditioned upon a minimum of 40 million shares be properly tendered and not withdrawn, HLTH said.

HLTH will use its cash investments, totaling approximately $1.3 billion, to fund the tender offer.

On Monday, HLTH and its 84% owned subsidiary, WebMD Health Corp., mutually terminated their merger agreement, blaming recent turmoil in the financial markets.

The merger would have eliminated the controlling class of WebMD stock held by HLTH and WebMD's existing dual-class stock structure, a prior news release said.

HLTH, formerly Emdeon Corp., is a health-care business, technology and information services company based in Elmwood Park, N.J.

New York-based WebMD provides health information services through its online portals and publications.

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