Centene-Humana Deal? Nope. CNC Stock Slides on the News


Is a Centene-Humana deal in the works?

Centene-Humana Deal? Nope. CNC Stock Slides on the News

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Recent rumors claiming that a Centene-Humana deal is in the works have been shot down. The killing of this rumor comes directly from Humana (NYSE:HUM), which says it has no plans of taking over Centene (NYSE:CNC).

The official statement from Humana rejecting the idea of a Centene-Humana deal comes in the form of a filing with the U.S. Securities and Exchange Commission. The company has this to say in its filing.

“Humana Inc.’s (the “Company”) long-standing policy is not to comment on rumors or speculation regarding possible M&A activity. However, in light of the significant investor speculation and persistent market rumors regarding the Company’s intentions with respect to pursuing a combination with Centene Corporation (“Centene”), the Company has chosen to make a one-time, limited exception to its no-comment policy (which continues in effect) and confirm that the Company will not make a proposal to combine with Centene as an alternative to Centene’s proposed transaction with WellCare Health Plans, Inc. The Company does not intend to make any further statement regarding the foregoing.”

It doesn’t get much more clear than that. Now that the rumors of a Centene-Humana deal are dead, CNC stock is taking a beating.

CNC stock was down 9% and HUM stock was up 1% as of noon Monday. CNC stock is up 2% and HUM stock is down 13% since the start of the year.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2019/06/centene-humana-deal-not-happening/.

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