WellCare Health could go on the block

WellCare Health Plan Inc. could undergo major surgery in the form of a possible sale following the impending departure of the company's top three executives, according to analysts.

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CIBC World Markets analyst Carl McDonalds is supporting rumors that WellCare Health could go on the block following the company's expected executive change. The company is also reportedly under state and federal investigation. However, details of the investigation have not yet been revealed. McDonalds claims follows Stifel Nicolaus Capital Market analyst Thomas Carroll statement Thursday morning of talk that health insurer Wellpoint Inc., which has a customer base of 34.8 million could acquire WellCare.

The Wall Street Journal reported that the WellCare board is negotiating the removal of Chairman and Chief Executive Officer Todd Farha, Chief Financial Officer Paul Behrens and General Counsel Thaddeus Bereday. News of the executive change and rumors of the possible sale dragged down the stock 17% closing at 42.25. -- Gerald Magpily

See Tampa Bay Business Journal article
See Wall Street Journal article

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