United-Humana deal called off
United-Humana deal called off
Minneapolis-based United HealthCare and Louisville, KY-based Humana have called off merger plans. Shortly after United's announcement in early August that it would take a $900 million second-quarter restructuring charge, the deal was scrapped. After United's stock lost 28% of its value, the fall would have reduced the deal's value to United shareholders by nearly $2.5 billion.
The companies released a statement saying that both boards decided to cancel the stock deal over the weekend.
"Humana disengaged because United identified problems where it makes more sense to stand on our own," said Greg Donaldson, spokesman for Humana. "At the time the transaction was announced in May, there were many compelling things about it. . . . Clearly, circumstances have changed."
Subscribe Now for Access
You have reached your article limit for the month. We hope you found our articles both enjoyable and insightful. For information on new subscriptions, product trials, alternative billing arrangements or group and site discounts please call 800-688-2421. We look forward to having you as a long-term member of the Relias Media community.