Robbins Arroyo LLP: Acquisition of Humana Inc. (HUM) by Aetna Inc. (AET) May Not Be in Shareholders' Best Interests
SAN DIEGO and LOUISVILLE, Ky., July 6, 2015 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the proposed acquisition of Humana Inc. (NYSE: HUM) by Aetna Inc. (NYSE: AET). On July 3, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which Aetna will acquire Humana. Under the terms of the agreement, Humana shareholders will receive $125.00 in cash and 0.8375 Aetna common shares for a total consideration of $230.11 for each share of Humana common stock.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/humana-inc
Is the Proposed Acquisition Best for Humana and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at Humana is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $230.11 merger consideration represents a premium of only 14.4% based on Humana's average closing price over the past month. This premium is significantly below the average one month premium of nearly 23.43% for comparable transactions within the past five years.
On April 29, 2015, Humana reported strong earnings results for its first quarter 2015. Pretax income was $744 million, an increase of 8.5% over the previous year, primarily due to improved year-over-year results in each of the Company's business segments. Adjusted EPS guidance for 2015 of $8.50 to $9.00 was reaffirmed, representing a growth rate of approximately 17% from 2014 Adjusted EPS. In commenting on these results, Humana President and Chief Executive Officer Bruce D. Broussard remarked, "Our first-quarter achievements included substantial revenue and membership growth, announcement of the launch of our population health technology business, Transcend Insights, the pending sale of Concentra, and the completion of our accelerated share repurchase program, as well as strong pretax income. These achievements contributed meaningfully to the advancement of our integrated care delivery model with its data-driven focus on the consumer, powered by our disciplined approach to capital allocation – which, taken together, represents a sustainable competitive advantage for Humana."
In light of these facts, Robbins Arroyo LLP is examining Humana's board of directors' decision to sell the company now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.
Humana shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information. Humana shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, [email protected], or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The law firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
[email protected]
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP
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