- In the saga of the proposed merger between Aetna and Humana, the next step is for the shareholders of both companies to vote whether to approve the deal on Monday.
- While the boards of directors of the companies have put their support behind the deal, the arrangement still rides on the approval of the shareholders, and then ultimately the approval of federal regulators still examining potential anti-trust concerns.
- Aetna's purchase of Humana has already faced opposition from within; Humana recently settled a lawsuit from two shareholders who argued the arrangement wasn't a fair deal for them and executives were lured onboard with multi-million dollar severance packages.
The suspense over Monday's shareholder vote will be over soon, as votes will reportedly be tallied and announced the same day. However, the companies will likely be waiting for regulators' approval for months.
Under the deal, Humana is to be purchased by Aetna for $37 billion, and Humana stockholders are set to receive 0.8375 of an Aetna common share and $125.00 in cash for each share of Humana common stock, according to the companies' joint proxy statement.
That will result in Aetna’s shareholders owning about 74% of the merged company and Humana’s shareholders owning about 26%, Louisville Business First has previously estimated. LBF adds Aetna will acquire all outstanding shares of Humana for a combination of cash and stock valued at about $230 per share.