After Losing Court Battles, Anthem Drops Efforts To Buy Cigna
Anthem says, however, that Cigna does not deserve a termination fee.
The Associated Press:
Anthem Gives Up Cigna Bid, Vows To Fight On Over Damages
Anthem has ended its soured, $48 billion bid to buy rival Cigna, but the nation's second-largest health insurer isn't giving up a fight over whether Cigna deserves a termination fee for the scrapped deal. Anthem said Friday that Cigna sabotaged the merger agreement and caused "massive damages" for Anthem, which provides Blue Cross-Blue Shield coverage in several states. It said it plans to "vigorously pursue" its claims against Cigna. (Murphy, 5/12)
Bloomberg:
Anthem’s Latest Court Loss Means Cigna Deal Is All But Dead
Anthem Inc.’s nearly two-year effort to buy rival insurer Cigna Corp. is officially dead. Anthem said Friday that it won’t appeal a Delaware judge’s ruling late Thursday that Cigna can walk away from the $48 billion health insurance merger. That leaves the companies to fight over who’s to blame for the deal’s collapse. ... The judge’s decision means Anthem could be on the hook for a $1.85 billion breakup fee to Cigna, which said Friday it will seek “prompt payment.” The insurer has argued that Anthem was too stubborn to see that the concerns about competition were insurmountable, and also wants $13 billion in damages. (Feeley, Tracer and McLaughlin, 5/12)
Modern Healthcare:
Anthem Calls Off Cigna Merger Deal After Another Court Loss
A Delaware Chancery Court judge late last week denied Anthem's request to prevent Cigna from backing out of the $54 billion merger agreement. "Anthem has delivered to Cigna a notice terminating the Merger Agreement," the company said in a statement. "Cigna has failed to perform and comply in all material respects with its contractual obligations." Anthem also said that it would not pay Cigna an estimated $1.85 billion breakup fee. In fact, Anthem hinted that it would be going after Cigna for losses due to the merger. (Lee and Livingston, 5/13)
