If the news from the WSJ late Sunday night is accurate, Aetna (AET) offers an extremely cheap stock. The company is rumored to have finalized a deal to acquire Coventry Health Care (CVH) in a $5.7B deal.
Both companies are leading national managed health care companies. Coventry has a larger focus on government-based health plans that apparently attracted the interests of Aetna.
Considering Aetna has only a $12.7B market cap, this is a sizable deal for the company to undertake, though the company could quickly show how beneficial a mostly cash deal can be in this ultra low interest rate environment.
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