UnitedHealth approached Aetna with a takeover deal that would be valued at more than $40 billion, according to the Wall Street Journal. The company reportedly sent a letter to Aetna about the potential deal, and it is uncertain whether Aetna responded.
The report comes after competitor insurance company Cigna (CI) rebuffed a $45 billion takeover offer from Anthem (ANTM). Other companies in the health insurance market are reportedly looking to consolidate with Aetna reportedly considering a takeover of Humana (HUM).
About 3.4 million shares of UnitedHealth were traded by noon Tuesday, compared to the company's average trading volume of about 3.9 million shares a day.
Insight from TheStreet's Research Team:
Some Dow Jones Industrial stocks have been weak as of late, but UnitedHealth Group (UNH:NYSE) has consolidated nicely. And with rumors about the company considering a takeover of Cigna (CI:NYSE) or Aetna (AET:NYSE), this stock continues to roll higher.
We see the nice uptrend intact, with higher lows. The bar on Monday is a big outside day, which is quite positive.