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Market Update

Janus Invests Big Stake in Healtheon/WebMD

Janus Capital used an unusual private placement to increase its funds' stake in Internet health information company Healtheon/WebMD to 10%.

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Janus Capital gave the stock of Healtheon/WebMD (HLTH) a jolt today by grabbing a huge chunk of the Internet company's shares for its mutual funds.

The provider of online medical information and services bragged that it had sold 15 million shares of restricted stock, or shares that do not trade on regular exchanges, to Janus for $930 million in a private transaction. Then it watched the price of its commonly traded stock jump by more than 7% to 71 1/16 on the Nasdaq stock exchange.

Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.