Humana (HUM) Said to Consider Sale Amid Receipt of Takeover Interest
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(Updated - May 29, 2015 2:14 PM EDT)
(Updated - May 29, 2015 1:14 PM EDT)
Humana (NYSE: HUM) popped higher Friday afternoon following reports that the company tapped Goldman Sachs to explore a potential sale amid takeover interest. Possible bidders are said to include Aetna (NYSE: AET) and Cigna Corp. (NYSE: CI), according to the WSJ.
UPDATE - The other two top U.S. healthcare plan providers include UnitedHealth Group (NYSE: UNH) and Anthem Inc. (NYSE: ANTM), though it wasn't speculated on whether either or both might move to acquire Humana.
Notably, Humana appointed Brian A. Kane as Senior Vice President and Chief Financial Officer last year. Kane previously worked for Goldman Sachs before joining the company.
Today's speculation also follows an announcement made last March, which had Humana entering an agreement to sell the stock of its wholly-owned subsidiary, Concentra, for approximately $1.055 billion in cash.
Humana's appeal is its strong Medicare franchise, which is expected to see increasing growth with the aging baby-boomer population moving into eligibility and opting out of the private-company version of the program, the WSJ noted.
Shares of Humana are up over 19 percent and reached a new 52-week high at $219.79 today.
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