Liars never win and winners never lie.
That much hit home Tuesday for Aetna Chairman and CEO Mark Bertolini, who saw his company's $34 billion deal to purchase Humana officially ended.
Bertolini's make an effort to acquire the rival health insurer was mortally wounded recently when a federal judge ruled the tie-up violated antitrust regulations and would likely result in higher prices for consumers.
The judge also excoriated Bertolini for misleading the country as he said last year that Aetna would exit several state-run health exchanges because the company was taking a loss in the businesses.
Aetna was booking a profit in certain from the states, it had been discovered via testimony throughout the trial – but Aetna gone to live in exit the exchanges only to pressure the Justice Department to okay the Humana deal.
The move blew up in Bertolini's face.
Rather than appeal a legal court ruling, Aetna and Humana cancelled the offer.
Aetna will feel a little bit of added sting since it owed Humana a $1 billion termination fee.
A second giant medical care insurance merger, Anthem buying rival Cigna, also blocked by a judge, seemed to be officially ended Tuesday.
Cigna is suing Anthem for any $1.85 billion breakup fee and suing it for $13 billion in damages, alleging Anthem did not create a good-faith make an effort to complete its $54 billion deal.
The common denominator may be the insufficient transparency, based on Hugh Tallents of management consultant cg42.
“Aetna picking a fight with the US government over the pet project from the president seems like a high-risk strategy,” Tallents said.
The head of a hedge fund who closely followed the Aetna deal said, “I think the threat [of leaving the exchanges] wasn't the issue, it is the fact he stayed [in half of them].”
By remaining in some state exchanges, Bertolini allowed the judge to examine each of the exited exchanges and show Aetna made profit a number of them – thus exposing Bertolini as misleading shareholders and the country, the hedge fund executive said.
Aetna also terminated its intend to sell some Medicare Advantage assets to Molina Healthcare, the businesses said.
Molina will receive a $75 million breakup fee.
Humana said hello will buy back at least $2 billion price of shares in 2021 and produce a net profit of $16.65 to $16.85 per share, helped through the payment from Aetna, and lift its dividend.
Wall Street analysts and investors suggested the Trump administration may be friendlier to deals, which Humana could again be considered a target for Anthem or Cigna.
Humana CEO Bruce Broussard said on a conference call the company would consider any takeover offer, balancing “the probability and timing of completing a transaction,” the present environment and also the process it's just been through.
Aetna and Anthem didn't return calls.
