WellPoint-Hancock Deal Hits Snag

WellPoint Health Networks Inc. said SelectCare Inc. of Troy, Mich., obtained a preliminary federal court injunction last week in Detroit temporarily blocking WellPoint’s $86.7-million acquisition of John Hancock Mutual Insurance Co.’s group health businesses. WellPoint said SelectCare claims the sale would violate a confidential agreement between it and John Hancock. WellPoint and Boston-based John Hancock have agreed to extend the sales agreement until March 1; under the terms of the extension, either side may pull out at any time. WellPoint shares gained 62.5 cents to close at $33.625 on the New York Stock Exchange. The sale would add about 1.4 million medical and 1.3 million dental members to Woodland Hills-based WellPoint. WellPoint said it is working with Hancock to see whether the matter can be resolved without going back to court. SelectCare and John Hancock, which is owned by its policyholders, declined to comment.