ROANOKE TIMES 

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, August 8, 1995                   TAG: 9508080087
SECTION: BUSINESS                    PAGE: B-7   EDITION: METRO 
SOURCE: 
DATELINE: FAYETTEVILLE, N.C.                                LENGTH: Short

TRIGON TO BUY N.C.-BASED HEALTH INSURANCE COMPANY

Trigon Blue Cross Blue Shield, Virginia's largest health insurance carrier, has agreed to purchase Mid-South Insurance Co. for $85.6 million, officials of both companies said.

``We're very excited about this,'' Mid-South President Graham Blanton told the Fayetteville Observer-Times. ``It's a good deal for our shareholders and for our customers.''

Trigon would buy Mid-South's 5.4 million shares for $15.67 per share. The price is the highest ever offered for Mid-South stock, which closed Monday at $14.25 a share, up $4.121/2, on the Nasdaq stock exchange.

Mid-South would retain its name after becoming a Trigon subsidiary and would retain its Fayetteville headquarters. Its 120 employees would keep their jobs, Blanton said.

Mid-South serves about 90,000 customers in managed-care health plans. The company did nearly $80 million in business last year and had total assets of $75.6 million. It operates in 28 states, the District of Columbia and the Virgin Islands.

Trigon, according to the company's annual report for 1994, has nearly 4,000 employees and 1.7 million members. Trigon did nearly $2.4 billion in business in 1994 and listed assets of $1.32 billion.

``The health care industry is consolidating at a very rapid pace, and we are fortunate to acquire an excellent company like Mid-South in our target growth areas,'' said Trigon Chairman Norwood H. Davis Jr.

The deal is subject to approval by state and federal regulators and Mid-South's 2,000 shareholders. The companies said the merger should be complete by December.

- Associated Press 


 by CNB