UnitedHealth Group to Buy Brazilian Benefits Provider Amil for $4.3 Billion in Cash (UNH)


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Health insurer UnitedHealth Group Inc. ( UNH ) 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 million.

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 Monday.

The Bottom Line
Shares of UnitedHealth Group ( UNH ) 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. ( UNH ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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