Talk of ECB Bond Buying Plan Boosts European Shares: Hot Trends
NEW YORK (TheStreet) -- Popular searches on the Internet today include the ECB as a report indicated the European Central Bank could embark on a bond plan that may help the euro zone.
European shares rose on the report that said the ECB could buy bonds of euro zone countries if borrowing costs rose above certain limits. Germany's der Spiegel magazine reported that the ECB's new bond buying plan could see the bank setting upper limits on bond spreads, and that the ECB would start buying above those limits. The magazine also said that the ECB's new plan would be revealed in the beginning of September.
The euro faltered slightly after a spokesman for the bank said he was unaware of any bond buying plan. The German central bank also reaffirmed its opposition to bond buying, adding to the euro's stumble.
European and global markets have been boosted recently by hopes that a bond buying plan from the ECB would help solve the debt crisis in the area.
Aetna(AET) is trending as the health care provider is set to buy Coventry Health Care for $5.7 billion in cash and stock, or $7.3 billion including debt.
The deal will make Aetna one of the largest providers of government-financed health care in the country. It's expected to increase Aetna's share of revenue from government business to over 30% from 23% on an adjusted basis. According to Aetna, the deal will give the company an additional nearly 4 million medical members and 1.5 million Medicare Part D members.
Aetna will pay $42.08 per share for Coventry, a 20% premium to Coventry's shares at Friday's close. Coventry shares climbed over Aetna's offer on the news to $42.15 in premarket trading. Aetna plans to finance the cash part of the deal by issuing $2.5 billion of new debt and commercial paper, in addition to using existing cash.
Aetna said the acquisition will be "modestly accretive" to its per-share operating earnings in 2013. It expects it to add 45 cents in 2014 and 90 cents in 2015.
The deal follows in the footsteps of other healthcare insurers which have added insurance providers as a new federal healthcare law aims to give more affordable coverage to more Americans.
General Motors(GM) and Isuzu are other popular searches. The automakers are recalling over 258,000 SUVs due to a short-circuit problem in power-windows and door-lock switches.