Judge: West Penn Can’t Seek Other Potential Buyers
PITTSBURGH (AP) – A judge says the Pittsburghbased West Penn Allegheny Health System can't seek other potential buyers, in granting an injunction requested by Highmark Inc. which still hopes to complete a $475 million takeover of the hospital network.
West Penn executives contend Highmark's insistence that West Penn file for bankruptcy to reduce nearly $1 billion in debt is a deal breaker.
But Allegheny County Judge Christine Ward says the merger deal requires West Penn to give Highmark 30 days to repair any perceived breach of contract – but West Penn, instead, unilaterally backed out of the deal.
West Penn wanted to woo other potential buyers and still keep $200 million health insurer Highmark has already invested in the deal.
Instead, Ward's ruling preserves the status quo and prevents West Penn from fielding or soliciting other takeover offers.