Big acquisition news on Wall Street this morning. Aetna has announced it will buy Coventry Health Care for $5.7 billion in an effort to deal with the government's healthcare reform. The total value of the deal comes out to $42.08 per Coventry share, a 20.4% premium on the stock's Friday closing price.
Aenta says the acquisition will help strengthen its Medicare and Medicaid business units to provide sufficient coverage once the new government overhaul expands the federally funded programs.
Both Coventry Healthcare and Aetna are seeing gains over this acquisition news. Aetna stock is up over 4% while Coventry shares are trading over 19% higher.