With the California Insurance Department commissioner authorizing the deal, the privately held, Napa, Calif.-based Doctors Co.s acquisition of publicly traded SCPIE passed its final regulatory test. An SCPIE news release said the closing took place on June 30, at which time Los Angeles-based SCPIE was delisted from the New York Stock Exchange and the two companies formed one of the largest medical malpractice insurance companies in the nation. The California attorney generals office had twice ruled that the deal would not substantially reduce competition and it also passed muster with the Federal Trade Commission last November. The approximately $281 million cash deal ($28 per share) was announced October 2007, and was met with stockholder protests as well as the usual regulatory challenges. In order to ensure that neither Doctors nor SCPIEs rates are excessive, the commissioner required that Doctors, as a condition of the authorization, submit rate applications for both itself and SCPIE by Sept. 1, 2008, and at least every three years thereafter, says Insurance Department General Counsel Adam Cole in a news release. Doctors agreed to these conditions. According to an e-mail from the Doctors Co., it insures 35,000 physicians while SCPIE covers 8,000.
Cleared acquisition creates large med-mal carrier
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