Health insurer UnitedHealth Group Inc. (
) on Monday announced it would acquire a 90% stake in Brazilian
health insurer and hospital operator Amil Participacoes SA for
about $4.3 billion in cash.
The total value of the deal rises to $4.9 billion when including
estimated realizable Brazilian tax benefits of about $600
UNH noted the acquisition will be completed in two steps. Based
on regulatory approval, the company plans to first purchase 60% of
Amil's outstanding shares in the fourth quarter of this year. These
share purchases will be made from management and controlling
shareholders. Next, UNH will then buy the remaining 30% of Amil
shares via a public offering in the first half of 2013.
UnitedHealth shares were mostly flat in premarket trading
The Bottom Line
Shares of UnitedHealth Group (
) have a 1.49% dividend yield, based on Friday's closing stock
price of $57.13. The stock has technical support in the $52-$54
price area. If the stock can firm up, we see overhead resistance
around the all-time high levels of $60-$62 a share.
UnitedHealth Group Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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