Merger creates nation’s leading health care benefits company
HARTFORD, CT, July 19, 1996 — Aetna (NYSE: AET) and U.S. Healthcare (NASDAQ: USHC) today announced that they have completed their merger, creating the nation’s leading health care benefits company.
Aetna Chairman Ronald E. Compton said, “This merger transforms Aetna into a growth company with the scale and expertise necessary to thrive in the dynamic health care industry, and positions us to deliver superior long-term value to shareholders. The health care industry, and managed care in particular, continues to be a business with excellent current and future prospects.
“Our unique ability to provide access to affordable, high-quality health care on a national level will be the key to our future success, allowing us to create the first truly national managed care company,” Compton said.
As part of the merger, Aetna Life and Casualty Co. has been renamed Aetna Services, Inc. and a new holding company, Aetna Inc., has been formed as the parent company to Aetna Services and U.S. Healthcare, Inc. Aetna Inc. will begin trading on the New York Stock Exchange under the symbol “AET” commencing on Monday, July 22, 1996.
U.S. Healthcare shareholders will receive $34.20 in cash, 0.2246 shares of Aetna Inc. common stock, and 0.0749 shares of Aetna Inc. 6.25% Class C Voting Preferred Stock for each share of U.S. Healthcare stock. Each share of Aetna Life and Casualty Company stock will become one share of new Aetna Inc. stock.
The combined Aetna/U.S. Healthcare health business will provide health care benefits, specialty health, group life and disability insurance to more than 23 million Americans.
For more information about Aetna Inc., please visit the company’s website at www.aetna.com.