Anthem filed a lawsuit against Cigna to block it from walking away from their $54 billion merger deal. As Fred Katayama reports, it comes a day after Aetna and Humana terminated their merger.
No Valentine's love lost here. Anthem is suing Cigna to stop it from walking away from their $54 billion merger deal. The health insurer says there's still time to complete the deal which was announced in mid-2015. This comes the day after Cigna told Anthem it's ending their deal. And it filed suit, seeking $13 billion in damages to shareholders and a nearly $2 billion breakup fee. It happened the same day Aetna and Humana terminated their $34 billion merger. The industry had earlier sought to consolidate in response to President Barack Obama's Affordable Care Act, but President Donald Trump has vowed to repeal and replace it. Cigna says it'll limit its share buyback program. Piper Jaffray analyst Sarah James said, "We believe this suggests Cigna was looking to deploy the capital in another way, potentially M&A, but we are hesitant to suggest another public-public merger offer." A federal judge ruled against the Anthem-Cigna deal last week, but Anthem has filed an appeal.