WSJ: UnitedHealth Approached Aetna About Takeover

(RTTNews) - Health insurer UnitedHealth Group Inc. (UNH) has approached Aetna Inc. (AET) about a takeover deal that would likely be valued at more than $40 billion, the Wall Street Journal reported Monday, citing people familiar with the matter.

According to the WSJ report, Minnetonka, Minnesota-based UnitedHealth made the approach to Aetna in the form of a letter. Hartford, Connecticut-based Aetna has a market capitalization of more than $42 billion, while UnitedHealth, the largest U.S. health insurer, has a market capitalization of $113 billion.

The approach by UnitedHealth came after another health insurer Anthem Inc. (ANTM) reportedly offered to acquire smaller rival Cigna Corp. (CI) for about $45 billion, but was rejected by Cigna. Anthem is also said to be weighing another bid for Humana Inc. (HUM).

Bloomberg reported in May that Humana is already exploring a sale after it was approached by Cigna about a potential deal.

The report about the approach by UnitedHealth comes at a time the health-insurance industry is on a consolidation drive as companies seek to cut costs and tap opportunities stemming from the Affordable Care Act.

UNH closed Monday's regular trading session at $118.98, up $1.33 or 1.13 percent on a volume of 6.81 million shares. However, in after-hours, the stock declined $0.08 or 0.07 percent to $118.90.

AET closed Monday's trading at $121.01, up $5.14 or 4.44 percent on a volume of 6.38 million shares.