Newman Ferrara LLP has begun an investigation into potential claims against the board of directors of Coventry Health Care, Inc. (“Coventry”) (NYSE: CVH) concerning the proposed acquisition of Coventry by Aetna, Inc. (“Aetna”) (NYSE: AET). On August 20, 2012, Coventry announced that it had entered into an agreement and plan of merger to be acquired by Aetna in a transaction valued at approximately $7.3 billion. Under the merger agreement, Coventry shareholders will receive $27.30 in cash and 0.3885 shares of Aetna common stock for each share of Coventry common stock owned. However, according to DealReporter, Coventry’s Board of Directors unanimously approved the merger agreement without having first conducted an auction for the sale of Coventry on the open market. Under the merger agreement, Coventry’s Board of Directors also agreed to pay Aetna an astounding $167.5 million termination fee that Coventry is required to pay Aetna if Coventry chooses to accept a competing offer that provides Coventry’s shareholders more value for their shares than Aetna’s offer. Newman Ferrara LLP’s investigation concerns whether Coventry’s Board of Directors has breached its fiduciary duties to act in the best interests of Coventry’s shareholders and to take all necessary steps to ensure that Coventry’s shareholders receive the maximum value readily available for their shares of Coventry stock. Concerned investors are encouraged to contact Newman Ferrara attorney Roy Shimon at (212) 619-5400 or firstname.lastname@example.org to discuss this investigation, their rights, or potential remedies. Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation, securities fraud and shareholder litigation, consumer protection, civil rights, and real estate. For more information, please visit the firm website at www.nfllp.com.
Coventry Health Care (NYSE:CVH) hit a new 52-week high Monday as it is currently trading at $50.34, above its previous 52-week high of $50.24 with 62,304 shares traded as of 10:06 a.m. ET. Average volume has been one million shares over the past 30 days.
Coventry Health Care (NYSE:CVH) hit a new 52-week high Thursday as it is currently trading at $49.42, above its previous 52-week high of $49.40 with 7,164 shares traded as of 9:31 a.m. ET. Average volume has been 1.1 million shares over the past 30 days.