	pesch unit seeks balance of republic health alpha health systems corp a wholly owned subsidiary of pesch and co said it submitted a merger proposal to the board of reph uisition co the parent company of republic health corp which is pct owned by pesch interests the balance of reph s common stock is owned by members of republic management mcdonnell douglas corp md donaldson lufkin and jenrette and pacific asset holdings l p republic currently owns hospitals and manages other facilities in states details of the proposal were not disclosed company representatives were not immediately available the proposal provides that reph would become a wholly owned subsidiary of alpha and that the existing reph common stockholders would become stockholders of alpha it said reph s board has appointed a special committee to negotiate terms of the proposed merger pesch said last year republic was uired by reph in a leveraged buyout transaction led by dr leroy pesch the principal shareholder of pesch and co alpha recently submitted a second offer to uire the stock of american medical international inc ami at dlrs a share in cash and securities which is still being considered by american medical s board pesch said reuter 
