Integrated to pay less for Coram Merger expected to make firm tops in its category

April 01, 1997|By Sean Somerville | Sean Somerville,SUN STAFF

Integrated Health Services Inc. of Owings Mills said yesterday that it cut its purchase price for Coram Healthcare Corp. from $222.6 million to $184.4 million.

The deal, announced in October, also calls for Integrated Health Services to assume $375 million of Coram's debt.

The transaction was originally scheduled to be made final by yesterday, but the closing date has been moved to the end of May.

The merger is expected to make Integrated Health Services the largest provider of health services that people get after they are released from a hospital.

Jean Swenson, an analyst who follows Integrated Health Services for Alex. Brown, said the company has not disclosed the reason for the price reduction. She said she did not view it as a threat to the merger.

"I think it's still likely to occur," she said. "They've already filed a preliminary proxy with the [Securities and Exchange Commission]."

Denver-based Coram agreed to an amendment reducing the price. The amendment must still be approved by the boards of both companies, Integrated Health Services said in a statement yesterday. Integrated Health Services and Coram did not return calls seeking additional comment.

Under the amendment announced yesterday, Integrated Health Services will pay a $25 million break-up fee if the merger is not consummated by May 31 -- a date that can be extended 60 days by Integrated Health Services or Coram.

Founded in 1986, Integrated was an early developer of "subacute" care, more intensive than a nursing home but less intensive than hospital care. Coram Healthcare Corp. is the country's largest provider of home intravenous drug therapy.

Integrated Health Services shares rose 25 cents yesterday, to $29.25.

Coram shares closed unchanged, at $4.

Pub Date: 4/01/97

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