Key HBO Executive Quits Before Merger With McKesson
ATLANTA -- HBO & Co., preparing to be acquired by McKesson Corp., said one of its top executives, Jay P. Gilbertson, resigned "to pursue other opportunities."</br></br>Shares of HBO, a supplier of software to the health-care industry, fell sharply on the news. In Nasdaq Stock Market trading Friday, HBO closed at $22.875, down $2.3125. McKesson, a drug wholesaler based in San Francisco, agreed last month to acquire HBO in a stock swap currently valued at about $11.5 billion. In New York Stock Exchange Friday composite trading, McKesson closed at $70.375, down $1.3125.</br></br>At HBO, Mr. Gilbertson served as co-president, co-chief operating officer and chief financial officer. McKesson and HBO had said he would play an important role in the combined company as a member of a new operating committee of eight executives, a McKesson spokesman said. But he said Richard H. Hawkins, McKesson's current chief financial officer, would retain that role in the new company, to be called McKesson HBOC.</br></br>Mr. Gilbertson couldn't be reached for comment. The McKesson spokesman said the two companies wanted to retain Mr. Gilbertson, but added: "His departure should not have a significant impact on our business." HBO said Albert J. Bergonzi, also a co-president, would assume Mr. Gilbertson's duties.</br></br>Ben Rooks, an analyst at CIBC Oppenheimer, said the stock market seemed to be overreacting to Mr. Gilbertson's departure. "I'm not surprised he's leaving," Mr. Rooks said. "I'm a little surprised by the timing." But Anthony Vendetti, an analyst at Gruntal & Co., said the resignation raised questions about "who's going to be minding the store at HBO."