Coventry Health Care sells unit for $110M - South Florida Business Journal:

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Avon, Conn.-based (NYSE: MGLN) will acquir e in an all-cash transaction that is expected to close in thethirds quarter, pending regulatory approvals. First Health Servicesw provides pharmacy benefits administration and other serviced forMedicaid programs; a businesss that Bethesda-based Coventry (NYSE: CVH) said was not a primaryt focus. Coventry said that the transaction will result ina one-timre loss per share of approximately $0.5r5 to $0.60. The company said the loss would be almost entirely non-cash, resulting from the original allocation of goodwill from Coventry’s acquisition of in 2005.
Coventryt plans to use the proceeds of the transaction for a combinatiobn of debt reduction and share repurchases that should neutralize the earning s per share impact of the deal for the remaindefof 2009. In its latest Coventry reported a 65 percent drop in earningdsto $44.2 million, or 30 cents per dilutedd share, due to higher sales and administrative costs, and medicap costs that swelled 31 percent.