Aetna completes financing in $5.6 billion bid to buy Coventry


Aetna has moved one step closer to its $5.6 billion acquisition of Bethesda, Md.-based Coventry Health Care.

Aetna, the third-largest health insurer, announced that it has completed the long-term financing necessary for the deal, with a public offering of about $2 billion.

The net proceeds from the offer, along with cash and $500 million of commercial paper to be issued before closing, is expected to finance the cash part of the Coventry purchase price.

Allen F. Wise

According to a recent report from The Washington Post that cited a Securities and Exchange Commission filing, the deal could mean large payouts for top Coventry executives if terminated without cause, including $14.5 million to chief executive Allen F. Wise.

Aetna CEO Mark Bertolini, meanwhile, told several media he is considering a hiring freeze, or reducing jobs at the health insurer if Congress and the White House can’t reach an agreement to avoid the “fiscal cliff.”


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