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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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
Which Stocks are Zacks Experts Talking About?
Stocks in today's headlines may be tempting buys, but how would you like a sneak peek at the stocks Zacks experts recommend? Starting today, for the next month, you can follow all of Zacks' private buys and sells in real time. You can track value and momentum stocks, ETFs, stocks under $10, options moves, insider trades, and stocks set to report positive earnings surprises (we've called them with 80%+ accuracy). Click here for all Zacks trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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