Change Healthcare is said to be seeking a “sizeable” reverse breakup fee from UnitedHealth if the parties decide to fight the Dept. of Justice’s lawsuit to block the deal, Seeking Alpha reports.
The Change Healthcare board is talking about a potential reverse fee of more than 5%. The original merger agreement didn’t include a reverse termination fee.
The news comes as merger end date of April 5 for the transaction is rapidly approaching. Analysts and investors largely expected the DOJ would challenge the deal, though the question has been if UNH will walk or continue to fight for the deal in court.
UnitedHealth said late last month when the DOJ suit was filed that it planned to “vigorously” defend its case.
The DOJ trial to block UnitedHealth’s $8 billion purchase of CHNG is scheduled to start Aug. 1 and is expected to last 12 days.
UNH agreed to purchase Change Healthcare for $25.75 per share in January 2021. Read more.
