Centene Falls 6% After Aetna Buys Coventry Health
Health insurer Centene (NYSE: CNC) is lossing ground on Monday after Coventry Healthcare (NYSE: CVH) agreed to be acquired by Aetna (NYSE: AET) for $5.7 billion, or $42.08 per share. The deal is for 65 percent cash, with the rest in Aetna stock. While Coventry shares have risen more than 19 percent in the wake of the announcement, Centene has lost around 6 percent on the session, falling sharply after the opening bell.
The takeover comes amidst a consolidating industry, as rivals to Aetna such as United Health (NYSE: UNH) and Cigna (NYSE: CI) have been buying smaller healthcare providers. Last month, Wellpoint (NYSE: WLP) announced a $4.9 billion takeout of Amerigroup Corp. (NYSE: AGP). Centene shares have risen 45 percent since that announcement, before coming under pressure on Monday.
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