LHC Group drops on report FTC looking at vertical harm theories

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LHC Group (NASDAQ:LHCG) fell 2% on a report that the Federal Trade Commission is looking at a potential vertical harm theory in its review of UnitedHealth's (NYSE:UNH) planned acquisition.

The FTC staff is said to nearing the conclusion of its information gathering, according to traders, who cited a Capitol Forum report. UnitedHealth (UNH) is said to have hired a lawyer who defended the company in its lawsuit against the FTC over its Change Healthcare acquisition.

The latest report follows other recent stories, including a CTFN report from last Wednesday that the transaction may get unconditional FTC clearance.

Dealreporter earlier this month said that a deal close can still happen in Q1. The parties certified substantial compliance on Dec. 6 and there's a timing agreement in place with no divestitures expected. The timing agreement is set to expire in mid-February.

LHC (LHCG) last month extended the termination date for its sale to UnitedHealth to March 28 and said it expects the deal to close in Q1.The companies received a second request from the FTC in June related to the $5.4 billion deal.

UnitedHealth (UNH) agreed to buy home health business LHC Group for $170/share in late March.