AOL Will Take Stake in Drkoop.com

Drkoop.com hired Bear Stearns & Co. to explore strategic alternatives and said America Online Inc. will take a stake in the company. The health-care information site, co-founded by former U.S. Surgeon General C. Everett Koop, said it will have a per-share loss of 80 cents to 82 cents in the first quarter. It was expected to have a loss of 52 cents, the average estimate of six analysts polled by First Call/Thomson Financial. The company said it has about five months of cash remaining. Expenses were higher than the company anticipated in the quarter, resulting in the wider-than-expected loss. It expects sales of $4.5 million to $4.7 million in the first quarter. The company plans to report earnings during the second week of May. The Austin, Texas-based company’s auditors warned last month that they have “substantial doubt” about its ability to stay in business because of its negative cash flow. AOL will modify its payment agreement with Drkoop.com to accept 10% ownership rather than cash payments and warrants. Drkoop.com shares rose 6 cents to close at $2.34 on Nasdaq.