Third time lucky for Southern Cross?
Southern Cross has made a third attempt to gain regulatory approval to buy its nearest rival Aetna.
Tuesday, September 19th 2000, 11:17PM
The Commerce Commission has turned down earlier applications because of concerns that Southern Cross will gain dominance in the medical insurance market.
Under this latest proposal Southern Cross is offering to sell all of Aetna's current health policies.
That leaves the question: Why does it want to buy Aetna?
Southern Cross chief executive Roger Bowie isn't talking. His response to any enquires is a simple "no comment."
The main speculation around the marketplace is that the key attractions of Aetna is its systems and its high-value contracts providing specialised administrative services for doctors.
In an earlier application Southern Cross proposed to sell some of Aetna's policies.
Commerce Commission chairman John Belgrave said the commission declined that second application because it was not satisfied that a divestment undertaking of the kind offered would answer the commission’s dominance concerns.
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