1,300
26
Article, 1 pages (200 words)

Dealbook aetna agrees to buy rival in deal worth $5.7 billion by michael j. de la merced

According to the New York Times article, Aetna will pay $27. 30 in cash and 0. 3885 of share for each of Coventry’s shares. This payment present around 20% premium paid over the latest closing share price. The announcement of the deal brought some reaction in the stock exchange with Aetna’s share going up by 5. 6%, to $40. 18 while shares in Coventry went up to close at $42. 04. The realizable benefits include Coventry adding over 5 million members to Aetna’s plans, which include 4 million medical members and 1. 5 million Medicare part D members.

This transaction will ultimately increase Aetna’s Medicaid footprint. More opportunities would be created to facilitate participation in the expansion of Medicaid. Integrating Coventry into Aetna will enable Aetna to expand its core insurance business especially the fast-growing government health care programs. The acquisition comes with some goodies where Aetna will be able to expand its relationships with health care providers in local geographies.

According to the article, the deal is expected to close by the middle of next year. I think that Coventry should accept the offer from Aetna because Coventry debt will be covered when the deal goes through. Furthermore, consolidation among various players in the healthcare is time so as to provide health services to many people.

Thanks for your opinion!
Dealbook aetna agrees to buy rival in deal worth $5.7 billion by michael j. de la merced. Page 1
Dealbook aetna agrees to buy rival in deal worth $5.7 billion by michael j. de la merced. Page 2

Your fellow student wrote and submitted this work, "Dealbook aetna agrees to buy rival in deal worth $5.7 billion by michael j. de la merced". This sample can be used for research and reference in order to help you write your own paper. It is prohibited to utilize any part of the work without a valid citation.

If you own this paper and don't want it to be published on EduFrogs.com, you can ask for it to be taken down.

Ask for Removal
Cite this Article

References

EduFrogs. (2022) 'Dealbook aetna agrees to buy rival in deal worth $5.7 billion by michael j. de la merced'. 17 October.

Reference

EduFrogs. (2022, October 17). Dealbook aetna agrees to buy rival in deal worth $5.7 billion by michael j. de la merced. Retrieved from https://edufrogs.com/dealbook-aetna-agrees-to-buy-rival-in-deal-worth-57-billion-by-michael-j-de-la-merced/

References

EduFrogs. 2022. "Dealbook aetna agrees to buy rival in deal worth $5.7 billion by michael j. de la merced." October 17, 2022. https://edufrogs.com/dealbook-aetna-agrees-to-buy-rival-in-deal-worth-57-billion-by-michael-j-de-la-merced/.

1. EduFrogs. "Dealbook aetna agrees to buy rival in deal worth $5.7 billion by michael j. de la merced." October 17, 2022. https://edufrogs.com/dealbook-aetna-agrees-to-buy-rival-in-deal-worth-57-billion-by-michael-j-de-la-merced/.


Bibliography


EduFrogs. "Dealbook aetna agrees to buy rival in deal worth $5.7 billion by michael j. de la merced." October 17, 2022. https://edufrogs.com/dealbook-aetna-agrees-to-buy-rival-in-deal-worth-57-billion-by-michael-j-de-la-merced/.

Work Cited

"Dealbook aetna agrees to buy rival in deal worth $5.7 billion by michael j. de la merced." EduFrogs, 17 Oct. 2022, edufrogs.com/dealbook-aetna-agrees-to-buy-rival-in-deal-worth-57-billion-by-michael-j-de-la-merced/.

Get in Touch with Us

If you have ideas on how to improve Dealbook aetna agrees to buy rival in deal worth $5.7 billion by michael j. de la merced, feel free to contact our team. Use the following email to reach to us: [email protected]