In a rare move, Humana quieted rumors that the health insurer is pursuing a transaction with Centene, according to a June 3 filing with the Securities and Exchange Commission.
Despite a long-standing no-comment policy, Humana made a one-time exception in its filing "in light of the significant investor speculation and persistent market rumors regarding [its] intentions with respect to pursuing a combination with Centene Corp." Humana said it "will not make a proposal to combine with Centene as an alternative to Centene's proposed transaction with WellCare Health Plans."
The filing sent Centene's stocks tumbling 8.3 percent in morning trading June 3. Humana's stock was up 5.5 percent, according to Barron's.
The rumors arose as Centene faced pressure from activist hedge funds to seek a possible sale rather than acquiring WellCare in a proposed $17.3 billion deal.
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