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 Aetna, which said last week it would buy Humana for about $37
billion in cash and stock, has to pay a termination fee of $1.69
billion, Humana said in a regulatory filing on Tuesday
(http://1.usa.gov/1JSxWVr)
Humana would pay the larger rival $1.31 billion if the deal is
terminated.
The deal faces antitrust issues as the authorities scrutinize how
the combination will affect competition for each line of insurance:
Medicare, Medicaid for the poor, individual insurance, commercial
insurance for small and large businesses and the large employer
business. (http://reut.rs/1LLQn1n)
Wall Street analysts and some antitrust experts have said that they
expect the combination to be approved, although regulators may
insist on some divestitures.
Aetna's chief executive said on Monday that he was confident about
an antitrust approval for the deal to close by June 30, 2016. The
company had already prepared for possible divestitures to address
overlaps with Humana's business, he added.
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Aetna is also required to pay Humana $1 billion if the deal is not
closed by June 30, 2016, according to Tuesday's filing.
(Reporting by Rosmi Shaji in Bengaluru)
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