HLTH will merge into subs. WebMD in an all-stock deal, Keep name

HLTH Corp. said it will complete its merger into health Web-site operator WebMD Health in an all-stock deal valued at about $1.2B. The companies had agreed to combine in a $2.31B cash and stock deal in Feb. 2008, but canceled the deal in Oct. due to financial market turmoil. They didn't want WebMD to be burdened with HLTH's debt. They said combination will improve efficiency & add liquidity for WebMD shares. HLTH owns about 80% of WebMD, or 48.1M shares. Under the deal, HLTH share will convert to 0.4444 shares of WebMD Class A stock. It estimated the WebMD shares are being valued at $1.2 B to $1.3B. WebMD Class B shares will be retired. HLTH shareholders will own about 80% of the combined company, that will keep the WebMD name. The deal is expected to close by the end of the year. Martin Wygod, chairman of WebMD & acting CEO and chairman of HLTH, will be chairman of the new WebMD. WebMD CEO Wayne Gattinella will be president & CEO. Stifel Nicolaus analyst said the merger values HLTH shares at $12.54, a premium of almost 7% over closing price of $11.76. Shares of Elmwood Park, NJ-based HLTH rose 1.50