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

Article 2 - Essay ExampleAccording to New York Times article, Aetna will chip in $27.30 in cash and 0.3885 of share for each of Coventrys shares. This payment present around 20% premium paid over the latest ratiocination share price. The announcement of the deal brought any(prenominal) reaction in the stock exchange with Aetnas 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 Aetnas plans, which include 4 million medical members and 1.5 million Medicare part D members.This transaction will ultimately increase Aetnas Medicaid footprint. More opportunities would be created to facilitate participation in the expansion of Medicaid. incorporate 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 h ealth care providers in local geographies.According to the article the deal is expected to close by the nerve center 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