CVS’s Aetna Takeover Comes With a $2.1 Billion Termination FeeBy
CVS would owe Aetna the funds if the deal announced Sunday fails for a variety of reasons, including if it can’t gain approval from antitrust authorities.
Likewise, Aetna would owe CVS $2.1 billion if the deal fell apart because of opposition from Aetna shareholders or board, or if the company took a better offer.
Aetna’s stock is trading well below the $207-a-share price the companies agreed to. On Tuesday, the shares closed at $178.69, little changed from Monday.
Earlier this year, Aetna had to pay insurer Humana Inc. a $1 billion breakup fee after Aetna’s $37 billion takeover of the smaller insurer was blocked by a federal judge following opposition from the Justice Department.