WellPoint Ends Bid to Buy Colorado Insurer

WellPoint Health Networks Inc., one of California’s biggest health insurers, ended its quest to outbid competitor Anthem Inc. for Colorado’s biggest insurer. WellPoint last month bid $266 million for Rocky Mountain Hospital & Medical Service Inc., the parent of Blue Cross Blue Shield of Colorado and Nevada, hoping to expand beyond its home state. WellPoint said it won’t proceed with the offer because Rocky Mountain’s contract with Anthem requires that Anthem receive $25 million if the original agreement is canceled. WellPoint had offered to pay $16 million to Anthem. Rocky Mountain earlier this year signed an agreement with Indianapolis-based Anthem after negotiations with WellPoint broke down. It reopened the process after WellPoint complained to regulators, saying its offer was superior to Anthem’s bid of $215 million. Rocky Mountain spokesman Neil Westergaard said his company would proceed with plans to sell itself to Anthem. WellPoint sought to buy Rocky Mountain and expand outside of California, where it operates Blue Cross of California. Shares in Thousand Oaks-based WellPoint fell 44 cents to close at $78.19 on the NYSE.