BUSINESS BRIEFS Business briefs

U.S. sues to block UnitedHealth acquisition

The U.S. Justice Department and four states sued Tuesday to block UnitedHealth Group's proposed $3.3 billion acquisition of Amedisys, a Louisiana-based home health company that would further United's push into the home care and hospice markets. The complaint marks the second time in less than three years that DOJ has tried to stop UnitedHealth from completing deals to bolster its fast-growing Optum division for health care services, which complement the company's legacy health insurance business. The government unsuccessfully sued to block Optum's acquisition of Change Healthcare in 2022. In the new case, the government alleges the acquisition of Amedisys would harm competition because UnitedHealth previously completed a $5.4 billion acquisition of LHC Group, another home care and hospice company based in Louisiana.

Consumer inflation outlook falls slightly

Households' inflation expectations declined slightly, the outlook for personal income held steady and workers are feeling more confident about the job market, according to a Federal Reserve Bank of New York survey. Inflation expectations dropped by 0.1 percentage point to 2.9% over the next year, by 0.2 percentage point to 2.5% over the next three years, and by 0.1 percentage point to 2.8% over a five-year period, according to the survey released Tuesday. The one-year outlook was the lowest since October 2020. The report should help provide some comfort that consumer inflation expectations continue to be anchored - an economic signal the Fed is monitoring as it decides how quickly to lower interest rates.

Elliott takes $5B stake in Honeywell

Activist investor Elliott Investment Management has taken a more than $5 billion stake in Honeywell International and is calling for the industrial conglomerate to split into two separate companies. In a letter sent to Honeywell's board, Elliott said that the company needs to simplify its structure as it deals with uneven execution, inconsistent financial results and an underperforming stock price. Elliott is advising Honeywell to separate its automation and aerospace businesses.