Latest news with #Banmedica
Yahoo
4 hours ago
- Business
- Yahoo
UnitedHealth Seeks $1B Latin America Exit: Sources
UnitedHealth Group Incorporated (NYSE:UNH) is one of the best Dow stocks to invest in. The company is considering several offers for its Latin American business, according to two insiders familiar with the situation, as it works to recover from a series of major setbacks, including the removal of its CEO and a reported criminal accounting investigation. The largest US health insurer has aimed to exit Latin America since 2022, but selling its Banmedica unit has become more urgent recently due to multiple challenges, one source said. A senior healthcare professional giving advice to a patient in a clinic. New CEO Steve Hemsley told shareholders last week that he is focused on regaining their confidence following a disappointing earnings report and a Wall Street Journal story about a criminal probe into alleged Medicare fraud. UnitedHealth Group Incorporated (NYSE:UNH) maintains it has not been notified by the Department of Justice and stands by its business integrity. UnitedHealth Group Incorporated (NYSE:UNH) has received four non-binding bids for Banmedica, which operates in Colombia and Chile, totaling around $1 billion, according to sources who requested anonymity due to the confidential nature of the negotiations. While we acknowledge the potential of UNH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None.
Yahoo
4 hours ago
- Business
- Yahoo
UnitedHealth Seeks $1B Latin America Exit: Sources
UnitedHealth Group Incorporated (NYSE:UNH) is one of the best Dow stocks to invest in. The company is considering several offers for its Latin American business, according to two insiders familiar with the situation, as it works to recover from a series of major setbacks, including the removal of its CEO and a reported criminal accounting investigation. The largest US health insurer has aimed to exit Latin America since 2022, but selling its Banmedica unit has become more urgent recently due to multiple challenges, one source said. A senior healthcare professional giving advice to a patient in a clinic. New CEO Steve Hemsley told shareholders last week that he is focused on regaining their confidence following a disappointing earnings report and a Wall Street Journal story about a criminal probe into alleged Medicare fraud. UnitedHealth Group Incorporated (NYSE:UNH) maintains it has not been notified by the Department of Justice and stands by its business integrity. UnitedHealth Group Incorporated (NYSE:UNH) has received four non-binding bids for Banmedica, which operates in Colombia and Chile, totaling around $1 billion, according to sources who requested anonymity due to the confidential nature of the negotiations. While we acknowledge the potential of UNH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
UnitedHealth Eyes $1 Billion Sale of Latin American Unit
UnitedHealth (NYSE:UNH) is weighing bids to sell its loss-making Latin America arm as it grapples with rising costs and leadership turmoil. Under review are four nonbinding offers for its Banmedica subsidiaryoperating in Colombia and Chilewith UnitedHealth targeting roughly $1 billion for the carve-out. Bidders include private equity firms Acon Investments and Patria Investments, nonprofit Christus Health and Peru's Auna. The sale push dates back to 2022 after Banmedica posted over $8 billion in losses, and now carries added urgency amid a 40% UNH stock drop this year. Warning! GuruFocus has detected 4 Warning Sign with UNH. This divestiture follows a turbulent stretch: CEO Andrew Witty's abrupt May departure, suspension of 2025 guidance due to surging medical costs, and news of a DOJ probe into Medicare Advantage that sent shares down 18% in a single day. New CEO Steve Hemsley has pledged to rebuild trust and refocus on core U.S. operations. UnitedHealth expects binding proposals by next month, aiming to funnel sale proceeds toward shoring up its domestic business and easing capital pressures. Why It Matters: Exiting Latin America would remove a division that's hemorrhaged cash, allowing UnitedHealth to prioritize its sizable U.S. footprint amid regulatory scrutiny and cost headwinds. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
UnitedHealth Eyes $1 Billion Sale of Latin American Unit
UnitedHealth (NYSE:UNH) is weighing bids to sell its loss-making Latin America arm as it grapples with rising costs and leadership turmoil. Under review are four nonbinding offers for its Banmedica subsidiaryoperating in Colombia and Chilewith UnitedHealth targeting roughly $1 billion for the carve-out. Bidders include private equity firms Acon Investments and Patria Investments, nonprofit Christus Health and Peru's Auna. The sale push dates back to 2022 after Banmedica posted over $8 billion in losses, and now carries added urgency amid a 40% UNH stock drop this year. Warning! GuruFocus has detected 4 Warning Sign with UNH. This divestiture follows a turbulent stretch: CEO Andrew Witty's abrupt May departure, suspension of 2025 guidance due to surging medical costs, and news of a DOJ probe into Medicare Advantage that sent shares down 18% in a single day. New CEO Steve Hemsley has pledged to rebuild trust and refocus on core U.S. operations. UnitedHealth expects binding proposals by next month, aiming to funnel sale proceeds toward shoring up its domestic business and easing capital pressures. Why It Matters: Exiting Latin America would remove a division that's hemorrhaged cash, allowing UnitedHealth to prioritize its sizable U.S. footprint amid regulatory scrutiny and cost headwinds. This article first appeared on GuruFocus.
Yahoo
a day ago
- Business
- Yahoo
UnitedHealth Group considers bids to divest Latin American unit
US health insurer UnitedHealth Group is considering multiple bids to offload its operations in Latin America, reported Reuters, citing sources. The insurer has been attempting to divest its Latin American assets since 2022, following losses exceeding $8bn in the region, the report said. The news agency further noted that the urgency to sell its subsidiary Banmedica, which operates in Colombia and Chile, has intensified in recent months due to financial pressures on multiple fronts. The company has already exited its operations in Brazil and Peru and is now focusing on securing a deal for its Colombian and Chilean operations. Currently, UnitedHealth has received four non-binding bids for Banmedica, estimated at around $1bn. The bidding entities are Acon Investments, Patria Investments, Christus Health and Auna from Lima. Auna is reportedly in discussions with a financial partner to strengthen its bid. UnitedHealth acquired Banmedica in 2018, with then-CEO David Wichmann expressing a long-term vision for growth in South America. However, the insurer decided to withdraw from the region three years later due to losses, particularly from its Brazilian operation, Amil. Despite Banmedica being profitable, with earnings before interest, taxes, depreciation and amortisation (EBITDA) of more than $200m, it is deemed too small for UnitedHealth's interests. Brazilian investment bank BTG Pactual is said to be advising UnitedHealth on the sale process. UnitedHealth expects to set a deadline for binding proposals for Banmedica by July, as it seeks to streamline its operations and focus on more profitable markets. The company bounced back to profitability in the first quarter of 2025, with net earnings of $6.4bn, compared with a net loss of $1.2bn in the same period a year ago. Stephen Hemsley took over the role of group CEO from Andrew Witty in May. "UnitedHealth Group considers bids to divest Latin American unit " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
