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Now that Anthem Inc. has finally completed its $20.8 billion purchase of WellPoint Health Networks, the merged company seems ready to make investors a heck of a lot of money.
WellPoint Inc., Indianapolis-based Anthem's new moniker, is the nation's largest health insurer, and analysts are expecting it to use its newfound clout to sign up new customers and increase profit.
Which helps explain why the stock has shot into the stratosphere. Last week, it reached an all-time high of $117.75 a share, up 63 percent since late October.
Back then, Anthem's ability to close the deal was in doubt, thanks to opposition from California Insurance Commissioner John Garamendi. In addition, New York Attorney General Eliot Spitzer had launched a probe of insurers' business dealings, casting a pall over the entire sector.
There's no pall these days. For the year, the company's shares are up 56 percent. Since the Indianapolis company went public in October 2001, the shares are up 227 percent. WellPoint's market value now tops $34 billion.
Legg Mason analyst Thomas Carroll notes in a report that WellPoint now has the top market share...