Aetna (AET) Stock: Gaining On Acquisition News


Aetna Inc (NYSE: AET) is having a relatively strong start to the trading session this morning, and for good reason. The company announced that it will soon be acquired by CVS Health (NYSE: CVS). Today, we’ll talk about the acquisition, how the stock reacted to the news, and what we’ll be watching for with regard to AET ahead.

CVS To Acquire AET

As mentioned above, Aetna is having a relatively strong start to the trading session this morning after the company announced that it will soon be acquired. In a press release offered early this morning, it was announced that CVS Health would be acquiring all outstanding shares of the company in a cash/stock deal. According to the agreement, shareholders of AET will receive $145.00 per share in cash as well as 0.8378 shares of CVS. This brings the total value of the acquisition to approximately $69 billion. In a statement, CVS Health president and CEO, Larry J. Merlo, had the following to offer with regard to the acquisition of AET:

This combination brings together the expertise of two great companies to remake the consumer health care experience. With the analytics of Aetna and CVS Health’s human touch, we will create a health care platform built around individuals. We look forward to working with the talented people at Aetna to position the combined company as America’s front door to quality health care, integrating more closely the work of doctors, pharmacists, and other health care professionals and health benefit companies to create a platform that is easier to use and less expensive for consumers.”

How The Stock Reacted To The News

As investors, one of the first things that we learn is that the news moves the market. Any time positive news is released with regard to a publicly traded company, we can expect to see gains in the value of the stock. So, it’s no surprise that we’re seeing gains in AET following the news of the takeover. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:32), AET is trading at $184.10 per share after a gain of $2.79 per share or 1.54% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on the deal between AET and CVS. While the boards of both companies have approved the transaction, there is still a matter of customary closing conditions and getting the acquisition past regulators. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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