Article # 2 Essay Example | Topics and Well Written Essays - 250 words

Article # 2 - Essay Example According to New York Times article, Aetna will pay $27.30 in cash and 0.3885 of share for each of Coventry’s shares. This payment present around 20% premium paid over the latest closing share price. The announcement of the deal brought some reaction in the stock exchange with Aetna’s share going up by 5.6%, to $40.18 while shares in Coventry went up to close at $42.04. The realizable benefits include Coventry adding over 5 million members to Aetna’s plans, which include 4 million medical members and 1.5 million Medicare part D members. This transaction will ultimately increase Aetna’s Medicaid footprint. More opportunities would be created to facilitate participation in the expansion of Medicaid. Integrating Coventry into Aetna will enable Aetna expand its core insurance business especially the fast growing government health care programs. The acquisition comes with some goodies where Aetna will be able to expand its relationships with health care providers in local geographies. According to the article the deal is expected to close by the middle of next year. I think that Coventry should accept the offer from Aetna, because Coventry debt will be covered when the deal go through. Furthermore, consolidation among various players in the healthcare is time so as to provide health services to many