Finance & Economy briefs

Health insurance company largest after
merger

LOS ANGELES “”mdash; The state’s insurance commissioner
gave his blessing Tuesday to a $16.4 billion merger that would
create the nation’s largest health insurance company after
wringing hundreds of millions of dollars out of the companies.

Federal regulators gave approval to the proposed merger of
Anthem Inc. and WellPoint Health Networks Inc. in February, but
Insurance Commissioner John Garamendi had blocked it for months by
rejecting Anthem’s acquisition of a WellPoint subsidiary,
Blue Cross Life & Health Insurance Co.

Garamendi had said the deal would reduce the quality of health
care for policyholders, pull $400 million a year out of California
in the form of dividends that would go to Indiana-based Anthem, and
give an excessive buyout package to WellPoint’s chief
executive.

Garamendi said Anthem agreed to concessions and $250 million in
contributions “˜”˜that will assure that California health
care consumers will realize benefits from this
transaction.”

“˜”˜With these additional concessions and commitments
by Anthem and WellPoint I am today announcing that I will approve
Anthem’s application and will allow a change in control of
Blue Cross Life & Health Insurance Co.,” Garamendi
added.

The combined company’s name will be WellPoint Inc., with
the corporate headquarters in Indianapolis and 26 million members
from Maine to California. The companies are the nation’s two
largest Blue Cross Blue Shield providers.

Neither Anthem nor WellPoint officials were immediately
available following the announcement. Spokesmen for each declined
comment Monday evening after Garamendi said he would be making an
announcement on the deal.

Anthem had sued Garamendi in August for blocking the proposed
merger.

Garamendi said the companies agreed to contribute $35 million to
provide health-care clinics in underserved California communities,
$15 million to train nurses and $200 million for health-care
services to underserved communities.

He also said the deal assures that Blue Cross Life & Health
policyholders will not see their premiums increased.

New diet pill helps some to quit smoking

NEW ORLEANS “”mdash; An experimental pill made by Sanofi Aventis
that offers the fairy-tale promise of helping people lose weight
and quit smoking has gathered even more stardust.

The biggest test yet of the drug found that it helped people not
only drop pounds but also keep them off for two years ““
longer than any other diet drug has been able to achieve.
Cholesterol and other health measures improved, too.

The impressive results from a study of more than 3,000 obese
people were presented at a medical conference Tuesday, capping
months of anticipation about the French pharmaceutical
giant’s new drug, Acomplia.

Civil war in Ivory Coast affects cocoa
export

ABUJA, Nigeria “”mdash; Deadly violence in Ivory Coast has shut
down cocoa exports from the world’s largest producer, closing
ports that ship more than 40 percent of the world’s raw
material for chocolate.

Clashes that have pitted Ivory Coast’s government and
supporters against French forces come at the peak of Ivory
Coast’s main harvest, with overall production last year of
1.4 million tons.

Violence has closed the country’s two main ports, in
Abidjan and San Pedro, since Saturday afternoon. Cocoa buyers are
not venturing out into the bush to buy cocoa, traders and other
officials told The Associated Press, speaking on condition of
anonymity.

Nation’s stock exchanges to undergo
reform

WASHINGTON “”mdash; The nation’s stock exchanges would be
forced to tighten their governance and move toward separating their
self-policing function from their business operations under a plan
proposed by federal regulators on Tuesday.

The Securities and Exchange Commission voted, 5-0, to open to
public comment proposed new rules for the exchanges’
governance, ownership structure and required disclosures. They
could be formally adopted sometime after the 45-day comment
period.

The reform plan proposed by the SEC does not go as far as the
sweeping overhaul the New York Stock Exchange made last year
following a scandal over the $188 million pay package of its former
chairman. But the SEC proposal makes the significant move of
requiring the exchanges to take steps toward separating their
self-regulation from their commercial operations.

Compiled from Bruin wire services.