Aetna Buying Maryland Insurer
By The Associated Press
Aetna is buying Coventry Health Care for $5.7 billion as the insurance industry realigns itself to better navigate the massive government health care overhaul.
The Hartford, Conn., company 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 percent premium on Coventry’s Friday closing price of $34.94.
The deal is valued at $7.3 billion, including Coventry’s debt.
Aetna Inc. said Monday that 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 that is targeted for expansion under the health care overhaul.
Coventry Health Care Inc. is based in Bethesda, Md.
(Copyright 2012 by The Associated Press. All Rights Reserved.)