Thursday, March 31, 2011

HealthSpring selling new shares, stock falls on dilution concerns

HealthSpring Inc. said that it would sell 7.5 million shares to repay debt and raise capital for general corporate purposes, which may include acquisitions of similar businesses.

The Franklin-based managed care company said underwriters resold the shares for $35.95 apiece.
HealthSpring expected net proceeds of about $262 million.

Its shares closed Friday at $36.60, down $1.37 or 3.6 percent, on investor concerns about dilution.

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