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Cigna Wants Divorce from Anthem Deal, Sues for Nearly $15 Billion
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On the heels of Aetna’s and Humana’s (HUM - Free Report) announcement, health insurance competitors Cigna (CI - Free Report) and Anthem also announced that their merger deal is done-zo.
Cigna filed a lawsuit against Anthem in the Delaware Court of Chancery, seeking $1.85 billion in reverse termination fees, as well as damages of more than $13 billion.
“These additional damages include the amount of premium that Cigna shareholders did not realize as a result of the failed merger process,” Cigna said. “This action is necessary to enforce and preserve Cigna’s rights and protect the interests of its shareholders.”
Last week, U.S. District Judge Amy Berman Jackson ruled against the merger, stating it would significantly reduce competition in the already concentrated health insurance market, especially for big national employers.
Bloomfield, Connecticut-based Cigna was apparently disappointed in the outcome, and believes the deal has no chance of achieving regulatory approval, despite Anthem’s announcement of an appeal. Calling off the deal will be in the best interest of its shareholders, according to Cigna.
"The company believes strongly in the merits of its case and hopes that this matter is rapidly resolved," Cigna said in a release.
Anthem, which operates Blue Cross-Blue Shield, was trying to buy Cigna for $48 billion.
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Cigna Wants Divorce from Anthem Deal, Sues for Nearly $15 Billion
On the heels of Aetna’s and Humana’s (HUM - Free Report) announcement, health insurance competitors Cigna (CI - Free Report) and Anthem also announced that their merger deal is done-zo.
Cigna filed a lawsuit against Anthem in the Delaware Court of Chancery, seeking $1.85 billion in reverse termination fees, as well as damages of more than $13 billion.
“These additional damages include the amount of premium that Cigna shareholders did not realize as a result of the failed merger process,” Cigna said. “This action is necessary to enforce and preserve Cigna’s rights and protect the interests of its shareholders.”
Last week, U.S. District Judge Amy Berman Jackson ruled against the merger, stating it would significantly reduce competition in the already concentrated health insurance market, especially for big national employers.
Bloomfield, Connecticut-based Cigna was apparently disappointed in the outcome, and believes the deal has no chance of achieving regulatory approval, despite Anthem’s announcement of an appeal. Calling off the deal will be in the best interest of its shareholders, according to Cigna.
"The company believes strongly in the merits of its case and hopes that this matter is rapidly resolved," Cigna said in a release.
Anthem, which operates Blue Cross-Blue Shield, was trying to buy Cigna for $48 billion.
This news directly follows Aetna’s and Humana’s mutual decision to call off their $34 billion merger earlier today. Read more on that here: Aetna, Humana Call Off $34 Billion Courtship in Bad Start to Valentine’s Day
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