Vote expected Monday in Aetna, Humana acquisition

Glass Lewis & Co., another shareholder adviser on the deal, has expressed concern about the golden parachutes due Humana’s top officials at the consummation of the deal (and, per their agreements filed with the SEC, if they do not continue on with Aetna).

CrowdStrike says it documented seven Chinese attacks against US technology and pharmaceuticals companies “where the primary benefit of the intrusions seems clearly aligned to facilitate theft of intellectual property and trade secrets, rather than to conduct traditional national security-related intelligence collection”. Humana Inc. and Aetna Inc. expect to complete the transaction in the second half of 2016. Aetna shareholders approved the issuance of up to 127 million common shares to Humana stockholders, who in turn voted to adopt the terms of the merger agreement with Aetna, finalized in July.

Aetna and Humana shareholders resoundingly ratified the proposed $37 billion acquisition of Humana, the Louisville-based health care company, by Aetna.

Last month, the CEOs of both Aetna and Anthem, which wants to buy Cigna for $54 billion, defended their respective multi-billion dollar merger plans before a Senate Judiciary subcommittee.

The mergers would reduce the number of major health insurance companies to three.

There are more than 12,000 Humana employees in Louisville.

That will change following the merger, as the combined company’s headquarters and top decision-makers are to be based at Aetna’s home in Hartford, Connecticut.

Aetna has also promised investors $1.25 billion in annual cost savings – or “synergies” – from combining the companies’ operations. That’s how companies refer to general costs such as employee salaries, office space and advertising. And Aetna has projected that 56 percent of the newly merged company’s revenues would come from its government business. A Kaiser Family Foundation report determined, “If the deal between Aetna and Humana proceeds, the consolidated firm would provide coverage to more than one-quarter – 26% – of all Medicare Advantage enrollees nationwide, making it the leading Medicare Advantage insurer”. Aetna is much stronger in commercial insurance, with almost 20 million members, to Humana’s 3 million.