The Firm is representing the non-management directors of Aetna Inc. (NYSE: AET) in connection with Aetna’s acquisition of Coventry Health Care, Inc. (NYSE: CVH) valued at $7.3 billion, including the assumption of Coventry debt, based on the closing price of Aetna common shares on August 17, 2012. Aetna expects to finance the cash portion of the transaction with a combination of cash on hand and by issuing approximately $2.5 billion of new debt and commercial paper.
Aetna is one of the nation’s leading diversified health care benefits companies, serving approximately 36.7 million people and offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services. Coventry is a diversified managed health care company that offers a full portfolio of risk and fee-based products, including Medicare Advantage and Medicare Part D programs, Medicaid managed care plans, group and individual health insurance, coverage for specialty services such as workers’ compensation, and network rental services.
The Simpson Thacher team includes Casey Cogut, Gary Horowitz and Arianna Cooper. Summer associate Matthew Penny provided valuable assistance.
