Major Shareholder Criticizes PacifiCare

Franklin Mutual Advisers Inc., an investment manager run by Michael Price that holds a 9.9% stake in PacifiCare Health Systems Inc., criticized the managed-care provider for failing to raise its share price. The Short Hills, N.J.-based investment advisor, holder of 1.45 million Class A shares on behalf of managed accounts, said in a regulatory filing that “absent aggressive and immediate action on the part of [PacifiCare], shareholders will continue to suffer.” Franklin said it will contact the company’s board and other shareholders, although it didn’t specify what action should be taken. PacifiCare shares have plunged 28% in less than four months, since closing at $70.50 on Sept. 15. Shares rose $3.72 to close at $52.72 on Nasdaq. Franklin said the company “mishandled” its integration of FHP International Corp., which PacifiCare bought for $2.2 billion in February. Franklin disclosed its holdings in a Schedule 13D filing with the Securities and Exchange Commission.