By Jon Kamp
The U.S. Department of Justice has extended an antitrust review
of Aetna Inc.'s (AET) planned purchase of fellow health insurer
Coventry Health Care Inc. (CVH), but the deal is still expected to
close in mid-2013, the companies said Friday.
Aetna announced plans in August to buy Coventry in a
cash-and-stock deal that was valued at $5.7 billion at the time. An
antitrust waiting period was set to expire late Thursday unless the
DOJ extended the review by seeking more information.
Both companies received a so-called second request from the DOJ
on Thursday, which extends the waiting period by 30 days after
Aetna and Coventry have substantially complied with that request,
unless the DOJ terminates the waiting period sooner.
"Aetna and Coventry have been cooperating with the DOJ staff
since shortly after the announcement of the merger and are
continuing to cooperate with the DOJ staff in its review of the
Merger," Aetna said in a regulatory filing with the Securities and
Exchange Commission. Coventry also made a filing disclosing the
DOJ's second request.
The deal for Coventry will boost Aetna's presence in
government-financed health care while expanding the Hartford,
Conn., company's commercial health-insurance business. Adding
Coventry's more than five million members will also solidify
Aetna's position as the third-largest managed-care firm by
membership, behind UnitedHealth Group Inc. (UNH) and WellPoint Inc.
(WLP).
Aetna shares rose 24 cents to $42.57 early Friday.
Write to Jon Kamp at jon.kamp@dowjones.com
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