By Vince Brennan – Managing
Editor, St. Louis Business Journal June
3, 2019
Louisville-based
Humana said Monday that it will not make a proposal to combine with
Clayton-based managed care provider Centene.
In an 8-K filing, Humana said, “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.”
Centene’s $17.3
billion deal to acquire WellCare was announced in March, but since then rumors
have persisted that Centene would be a prime acquisition target by Humana.
A trio of hedge
funds in recent weeks have acquired shares in Centene, reportedly out of the belief that Centene could do better
for shareholders if it found a suitor to acquire Centene instead.
Centene and
WellCare continue to advocate for their deal which, if approved, would create a
new giant in the managed care industry, with about 22 million members across 50
states and $97 billion in combined revenue.
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