Aetna completes financing in $5.6 billion bid to buy Coventry

Advertisement

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.”

 

3 Responses

Pages linking to this article:

Leave a Comment

Follow IFAwebnews: 
Important links and updates throughout the day via Twitter Join IFAwebnews’ Insurance News group on LinkedIn.com Become a fan of IFAwebnewss Insurance News on Facebook Feeds for all the ourinsurance news or just the lines you need. Insurance news delivered to your inbox
© 2013 New Horizon Group, Inc. :: Insurance & Financial Advisor | IFAwebnews.com :: NS 350 queries. 0.826 seconds.