Medco Likely Top Bidder for Aetna PBM Unit

FRANKLIN LAKES, N.J. (TheStreet) -- In an auction for Aetna's(AET Quote) pharmacy-benefit management business that has drawn little interest, Medco Health Solutions (MHS Quote) is seen as the lead bidder, a report says.

Medco is seen as the leading candidate because of the strategic fit of the unit and because of its ability to pay without having to seek significant financing, Reuters reports, citing sources familiar with the situation. CVS Caremark (CVS Quote) also is interested in the PBM unit, and analysts have said Walgreen(WAG Quote) could be a potential bidder.

The auction, however, could conclude without a deal if Aetna fails to get the right price, sources said, according to Reuters.

The Wall Street Journal reported last month that Aetna's business has been shopped around by bankers at Bank of America Merrill Lynch and Credit Suisse. The business, which manages prescription-drug benefits for more than 11 million members, has been up for sale for a couple months, according to the newspaper.

An analyst report in April estimated Aetna could get at least $2 billion for the pharmacy-benefit business, the Journal noted last month.

-- Reported by Joseph Woelfel in New York.

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