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Fly News Breaks for June 2, 2016
CI, ANTM, HUM, AET
Jun 2, 2016 | 07:14 EDT
Wells Fargo recommends owning Aetna (AET) and Humana (HUM) within the managed care space. The firm says there is a greater than 90% chance of the merger between them closing, as it thinks that most antitrust concerns about the deal could be remedied through divestitures of the companies' Medicare Advantage businesses. The firm believes that ,if the deal falls through, both Aetna and Humana are well-positioned as standalone companies. Conversely, Wells sees only a 55% chance of the Anthem (ANTM)-Cigna (CI) deal closing, and it's less enthusiastic about those companies on a standalone basis. Wells keeps Outperform ratings on Aetna and Humana, and Market Perform ratings pn Anthem and Cigna.