Shares of Humana jumped more than 8% in afternoon trading after Bloomberg reported that it is close to a sale to Aetna.
The deal could be closed as early as this weekend, Bloomberg reported, citing people familiar with the matter.
The report noted that talks reignited after news over the weekend that Anthem and Cigna were in their own negotiations for a deal.
There’s a big five-way fight for consolidation among the big healthcare insurers. They are scrambling to merge, and cut costs and they argue this will reduce the costs of healthcare.
And with the green light the Supreme Court has now given the Affordable Care Act, they need to be stronger to face the competition.
Humana shares were halted for volatility after the news.
On May 29, shares spiked 17% on a report that it is looking to sell itself.
Aetna shares rose about 3% on the news. Here’s a chart showing the pop in Humana shares:
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