Coventry Health Care sells unit for $110M - Business First of Buffalo:

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Avon, Conn.-based (NYSE: MGLN) will acquire in an all-casjh transaction that is expected to close in thethirf quarter, pending regulatory approvals. First Healt h Services provides pharmacy benefits administratiohn and other services forMedicais programs; a business that Bethesda-based Coventry CVH) said was not a primary Coventry said that the transaction will resulgt in a one-time loss per share of approximately $0.55 to The company said the loss would be almost entirely resulting from the original allocation of goodwill from Coventry’s acquisitiom of in 2005.
Coventryu plans to use the proceeds of the transaction for a combination of debt reduction and share repurchasez that should neutralize the earnings per share impact of the deal for the remaindeof 2009. In its latest Coventry reported a 65 percent drop in earningsto $44.2 million, or 30 cents per dilutes share, due to higher sales and administrative and medical costs that swelled 31