The board of Blue Cross and Blue Shield of Delaware, Wilmington, has rejected an unsolicited takeover bid from MCD Foundation, the parent of Medical Center of Delaware.
The decision leaves Blue Cross and Blue Shield of New Jersey as the Delaware plan's lone suitor and likely owner.
MCD Foundation's takeover proposal involved no cash payment to the Delaware Blues, while an earlier definitive agreement with the New Jersey plan would be worth $103 million, the board said.
In addition to the immediate financial implications, MCD Foundation's proposal "raises serious anti-competitive concerns," the board of the Delaware plan announced. The board also said hospital ownership would cause the company to lose the right to be a licensed Blues plan.
MCD Foundation made the bid last fall (Nov. 11, 1996, p. 12). The offer from the New Jersey Blues has been on the table since last May.
The Delaware plan will focus on completing its deal with the New Jersey Blues plan, which has entered an agreement to be acquired by Anthem Blue Cross and Blue Shield.
Anthem, based in Indianapolis, is the product of a 1994 merger of Blues plans based in Cincinnati and Indianapolis. It currently is embroiled in a dispute with more than 30 hospitals in Kentucky (See story, this page).