Regional news:
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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Pages linking to this article:
- Aetna’s Bertolini warns of layoffs as U.S. approaches ‘fiscal cliff’ | Insurance & Financial Advisor I IFAwebnews.com
[...] Other CEOs represent such firms as Walmart, Xerox, American Express and Ford.In other news, Aetna has completed its financing stage in its bid to buy national health insurance company, Coventry Health Care for $475 million.var [...]
- The Booming Business Of Medicaid | Health
[...] secured long-term financing necessary for the deal, with a public offering of about $2 [...]
- The Booming Business Of Medicaid | About Health
[...] secured long-term financing necessary for the deal, with a public offering of about $2 [...]
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