Aetna Close To Acquiring Humana: Bloomberg

(RTTNews) - Health insurer Aetna Inc (AET) is closing in on a deal to buy Humana Inc (HUM) and a transaction could take place as early as this weekend, Bloomberg said Thursday, quoting people familiar with the matter.

Talks between the two companies have gained momentum, spurred by recent merger negotiations between Anthem Inc (ANTM) and Cigna Corp (CI), Bloomberg said.

While finer details of the merger talks are yet to emerge, Aetna has made a formal cash and stock bid this week, Bloomberg said; any proposal would probably value Humana above its $28 billion market capitalization as of Wednesday's close.

But more players are in the fray; Humana has received an acquisition offer from Cigna, although Humana prefers a deal with Aetna, Bloomberg said. Also, UnitedHealth Group Inc (UNH) recently made a takeover approach to Aetna.

Merger talks in the industry have picked up as companies seek to better benefit from the Affordable Care Act, and to cut costs.

AET closed Thursday at $132.60, up $5.09 or 3.99%, on the NYSE. In after hours, the stock gained $0.05 or 0.04%.

HUM closed at $197.37, up $13.14 or 7.13%, on the NYSE. In after hours, the stock climbed $3.13 or 1.59%.