Market Overview

Coventry Sympathy Plays Pull Back After Initial Spike

Aetna (NYSE: AET) announced it would acquire Coventry Health Care (NYSE: CVH) for $5.6 billion Monday, causing shares of Coventry to jump over 18 percent to all-time highs.

Coventry's competitors got an early boost in trading, but quickly fell off later in the morning. It would seem investors may have thought that the deal would have positive effects on other healthcare names, but these predictions didn't come to fruition.

Humana (NYSE: HUM) traded up roughly 1.5 percent while other competitors such as Health Net (NYSE: HNT) jumped nearly 3 percent, before both dropped roughly 4 percent following the brief gain. Humana is among the few competitors that recovered the loss, but most are trading down roughly 1% following the early morning spike.

Shares of Aetna traded up about 3 percent on Monday near $39.

Posted-In: News M&A Intraday Update Movers

 

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