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LETTERS TO THE EDITOR
Group Health |
| I was just reading the October issue Vol. 18 No. 10 of the journal regarding the sale of KPS to Group Health. As a CPA I find this whole transaction very interesting. Frank Haberlach states that after paying $19 million for a new toy wouldn't they want to tweak it? The interesting part of the transaction that no one apparently sees is that Group Health didn't pay anything for Group Health. Not a single penny. Group Health took $19 million out of their bank account and put it into KPS bank account. After that transaction Group Health owns 100% of KPS to include the $19 million KPS bank account. For absolutely nothing Group Health acquired the building that KPS resides in including their customer base, the $7 million that KPS has in their reserve bank account and all of KPS employees etc, etc. I'm amazed that the local city and business leaders didn't see the financial beauty of this transaction. My hat is off to the financial guru at Group Health that came up with this plan.
Cecil R. Whitlock, CPA |
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