Investor Sentiment on Aetna-Humana Deal Darkens

The video discusses the potential blocking of the Anthem, Cigna, and Humana merger, highlighting the role of the Department of Justice and market reactions. It explores the differences between behavioral and structural remedies, the impact of deal spreads, and the factors influencing deal premiums, including market trends and scarcity factors.

What is the main reason the Department of Justice might not need Elizabeth Warren's input on the merger?

• They have already made a decision.

• They rely on public opinion.

• They make independent decisions.

• They follow Warren's guidance.

What is a significant challenge for the Cigna and Anthem merger?

• High competition from Humana.

• Lack of market interest.

• Structural remedies due to local markets.

• Behavioral remedies due to the national Blue network.

Why is the Humana transaction considered to have a higher probability of success?

• It involves a larger market.

• It is a Medicare Advantage transaction with discrete markets.

• It has fewer regulatory hurdles.

• It is supported by Elizabeth Warren.

What factor can lead to a high deal premium?

• Low market demand.

• A large number of similar companies.

• Scarcity of the company being sold.

• Government intervention.

What trend has been observed in the biotech industry regarding deal premiums?

• They have been astronomical due to a merger frenzy.

• They have been unaffected by market trends.

• They have decreased significantly.

• They have remained stable.