United-Humana deal called off
Minneapolis-based United HealthCare and Louisville, KY-based Humana have called off merger plans. Shortly after United's announcement in early August that it would take a $900 million second-quarter restructuring charge, the deal was scrapped. After United's stock lost 28% of its value, the fall would have reduced the deal's value to United shareholders by nearly $2.5 billion.
The companies released a statement saying that both boards decided to cancel the stock deal over the weekend.
"Humana disengaged because United identified problems where it makes more sense to stand on our own," said Greg Donaldson, spokesman for Humana. "At the time the transaction was announced in May, there were many compelling things about it. . . . Clearly, circumstances have changed."
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