Citizen

In 1995, CEO members directly intervened in health insurance company merger proceedings to demand that needs of consumers, employees and the community were not left out of the equation. Their intervention significantly impacted the merger proceedings and shifted the focus of the debate to include the employees and communities.

When large companies merge with each other, the impetus is to increase profits, streamline operations, and cut down on expenses. Despite the attempt by companies to promote how the merger will help the consumers, the community and employees, generally the employees and the community are the losers with consumers sometimes reaping the benefits and shareholders always winning.

CEO, in its mission to increase corporate accountability and shift the balance of power from shareholders, board members and high level corporate executives to employees, consumers and the community in which a corporation resides, is committed to being a voice for the employees that always lose and whose interests generally fall at the bottom of the list, when a corporate merger is undertaken.

Other mergers in which CEO has attempted to intervene or been involved include:

1999 Anthem Blue Cross/Blue Shield
The CT Employee's Union and Livingston, Adler, Pulda & Meiklejohn, PC appealed the Insurance Department's decision to approve this merger in their role as policy holders. As a result of this merger, the Universal Health Care Foundation was created to support efforts around the state to improve access to health care for CT residents.

1999 AETNA/Prudential
AETNA proposes to purchase Prudential HealthCare and its 6.6 million members for $1 billion. The American Medical Association opposed this merger because it would limit choices for patients and employers, reduce competition, and erode ability of physicians to make medical decisions based on science and needs of patients (Hartford Courant, 12/98).

1999 ConnectiCare Reorganization
This reorganization would allow ConnectiCare to convert to a for profit entity and transfer its assets to a non-profit foundation that will use its funds to improve the health of Connecticut citizens. This was the birth of the CT Health Foundation. CEO followed the proceedings of this reorganization and voiced its concerns to the Attorney General throughout the process.

2000 AETNA/ING
CEO presented testimony at this hearing regarding the lay offs and future employment security for those employees of both companies.

2005 Travelers/Metlife
CEO filed for intervenor status in this merger which was approved by the CT Insurance Department. The City of Hartford also filed for intervenor status and was granted such status. For a copy of CEO's testimony in these proceedings, click here.

For a copy of the concept paper prepared by Roger Floyd "Increasing Corporate Responsibility through Promoting Just and Compassionate Principles" click here.

Big Boom in Corporate Mergers
By MELYNDA DOVEL WILCOX | Mar 01 '05
From Kipplingers:

Don't be surprised if your bank changes its name, your cellular network expands, or the retailer on the corner gets a new logo. After a lull of nearly four years, corporate mergers and acquisitions are stacking up faster than the queue at a Vegas wedding chapel on Valentine's Day.

Thanks to a rush of year-end couplings, $844 billion worth of corporate deals were announced in 2004, up 50% from 2003 levels. U.S. mergers could hit the $1-trillion mark this year. "Corporate Cupid is alive and well," says veteran money manager Mario Gabelli. "All the elements are in place."

Mergers peaked in 2000, then came to a halt when Wall Street's bubble burst. Afterward, executives were too focused on internal matters--including accounting scandals at acquisition-minded companies such as Enron and Tyco--to think about buying businesses.

These days, corporate balance sheets are strong and cash is plentiful. Companies in Standard & Poor's 500-stock index enjoyed record profits in 2004, up 20% from 2003. Cash on hand at those companies has grown to $600 billion, which is nearly double the amount in corporate coffers in 2000.