Summary Box: Aetna to buy Coventry in $5.7B deal

Monday - 8/20/2012, 2:58pm EDT

By The Associated Press

(AP) - STITCHED TOGETHER: Health insurer Aetna Inc. said Monday it will buy fellow insurer Coventry Health Care Inc. in a cash-stock acquisition totaling $5.7 billion.

HEALTHY PREMIUM: Aetna will pay $42.08 for each share of Coventry stock. That includes $27.30 in cash and a portion of its stock. The price represents a 20 percent premium on Coventry's Friday closing price of $34.94.

BOOSTER SHOT: The acquisition will help Aetna build its presence in Medicaid, a state-federal program poised for growth under the health care overhaul. It also expands the insurer's presence in the federally backed Medicare program.

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