AETNA ENTERS NEGOTIATIONS TO SELL FINANCIAL UNIT TO ING

Connecticut-based insurer Aetna is in talks to sell its financial services and international operations to ING of the Netherlands, in a reversal of its decision last March to retain all its operations and split them into two separate, publicly traded companies. Citing “people close to the company”, US television network CNBC reported that Aetna had engaged financial advisers to pursue the sale of the divisions in a deal that could yield as much as $9bn. Aetna is seeking to finalise a deal by the end of the month, CNBC reported. Aetna and ING each confirmed that negotiations were under way. ING said that a successful deal would make it one of the 10 leading US life assurers and bolster its operations in Latin America and Asia. In early March, Aetna had announced a decision to split into separate financial services and health operations after rejecting an unsolicited $10bn bid from ING and California-based healthcare group WellPoint Health Systems to take over the entire Aetna operation. Aetna shareholders have since been urging the company to buy back shares and sell the financial services business. Aetna shares rose 6.5% to close at $66.75.