Aetna to buy Coventry for $US5.7 billion

Reported by AAP
Monday, August 20, 2012
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Aetna is buying Coventry Health Care for $US5.7 billion ($A5.49 billion) as the US insurance industry realigns itself to better navigate the massive government health care overhaul.

Aetna will pay a total of $42.08 for each share of Coventry stock. That includes $27.30 in cash and a portion of its stock.

The price represents a 20 per cent premium on Coventry's Friday closing price of $34.94.

The deal is valued at $7.3 billion, including Coventry's debt.

Aetna said on Monday the deal will help its Medicare Advantage businesses, and it will grow the insurer's Medicaid business.

Medicaid is the state-federal program that provides coverage for the needy and disabled. It is targeted for expansion under the health care overhaul.

18/05/2013 21:32Sydney, Australia. 18 May,2013
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