LHCG - LHC Group gains amid speculation FTC won't try to block UnitedHealth deal

LHC Group ( NASDAQ: LHCG ) rose 4% amid speculation that the Federal Trade Commission likely won't sue to stop its planned sale to UnitedHealth ( NYSE: UNH ).

There was some speculation circulating among traders that he FTC staff was unlikely to try to block the UnitedHealth ( UNH ) deal.

The speculation comes after CTFN late last month reported that FTC is unlikely to challenge the combination. Legal arguments about vertical theories of harm are unlikely to be effective in any attempt to thwart the combination. Dealreporter also last month said that no divestitures are expected in an FTC clearance and a timing agreement is set to expire in mid-February.

There was also a report last month that the FTC was looking at a potential vertical harm theory in its review of the deal. UnitedHealth ( UNH ) was said to have hired a lawyer who defended the company in its lawsuit against the FTC over its Change Healthcare acquisition.

LHC ( LHCG ) in December extended the termination date for its sale to UnitedHealth to March 28 and said it expects the deal to close in Q1. The companies received a second request from the FTC in June related to the $5.4 billion deal.

UnitedHealth ( UNH ) agreed to buy home health business LHC Group for $170/share in late March.

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