Coventry Health Soars 19% (CVH, CIS, WLK, DEO, GRPN)
Coventry Health Care In (NYSE:CVH) jumped up 18.86% to $41.53 on a traded volume of 4.40 million shares. Aetna Inc will acquire Coventry in a deal valued at $7.3 billion, including the assumption of Coventry debt. Under the terms of the agreement, Coventry stockholders will receive $27.30 in cash and 0.3885 Aetna common shares for each Coventry share. Aetna expects to finance the cash portion of the transaction with a combination of cash on hand and by issuing approximately $2.5 billion of new debt and commercial paper. The acquisition is expected to close in mid-2013.
Camelot Information Systems Inc (ADR) (NYSE:CIS) surged up 1.80% to $2.26 after the Company announced second quarter results. Net revenues increased 4.5% to $62.1. Gross profit was $16.2 million as compared to $19.0 million in the prior year period. Adjusted operating income was $4.5 million as compared to adjusted operating income of $8.8 million in the year ago quarter. Adjusted net income was $3.5 million as compared to $8.0 million in the previous year period.
Westlake Chemical Corporation (NYSE:WLK) went up 0.22% to $68.77. The Board of Directors declared on a dividend of $0.1875 per share, an increase of over 150% from the second quarter of 2012. The increased dividend will be payable on September 12, 2012 to stockholders.
Diageo plc (ADR) (NYSE:DEO) went up 0.43% to $106.50. The Telegraph said that the Company is in discussion a cash-and-stock deal around $3 billion for the acquisition of Mexican tequila brand Jose Cuervo from the Beckmann family. Goldman Sachs Group Inc and HSBC Holdings Plc are advising Diageo on the deal. According to the paper, Diageo has also discussed a deal for a stake in Indian spirits and wines maker United Spirits Ltd.
Groupon Inc (NASDAQ:GRPN) decreased 1.26% to $4.69. The stock is down after analyst raised concerns about the future effect of slowing growth on the daily deal company’s large cash position.