WellCare (WCG) shares spiked near the close of trading Wednesday on no apparent news. A trader tells Fortune’s Scott Moritz the rumor is that the struggling Medicaid HMO will be bought by UnitedHealth (UNH), a big health insurer with some marketplace issues of its own. WellCare shares were up 6% at 4 p.m. EST, after trading higher by about 3% for most of the day.
Investors are betting WellCare could make an attractive target in spite of the uncertainty shrouding the company over the past year. Shares plunged last fall after federal agents raided the company’s Florida offices in search of evidence that the company was overbilling federal health programs. WellCare has said it is cooperating with investigators, and its top three execs left earlier this year, but shares remain more than 60% below their year-ago levels.
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