Activist Investor Icahn Drops Opposition To Cigna-Express Scripts Deal After Advisory Firms Signal Their Support
Billionaire Carl Icahn had called the deal a "$60 billion folly," but is now walking back his opposition in light of recommendations from Institutional Shareholder Services and Glass Lewis. The latter called the insurer’s offer for the pharmacy benefits manager “both strategically and financially compelling, structured in a reasonable manner from a valuation standpoint for Cigna shareholders.”
Reuters:
Icahn Reverses Position On Cigna-Express Scripts Deal
Activist investor Carl Icahn said on Monday that he no longer intended to solicit proxies to vote against the $52 billion Cigna-Express Scripts deal, a turn around from his position last week when he urged the health insurer's shareholders to vote against it. Icahn's comments come after proxy advisory firms Glass Lewis & Co and Institutional Shareholder Services Inc (ISS), as well as hedge fund Glenview Capital Management, extended their support for the deal. (8/13)
The Wall Street Journal:
Icahn Backs Down On Cigna-Express Scripts Deal
Cigna has said Mr. Icahn doesn’t understand the dynamics of health care and appeared to be betting against the deal for a profit. It called his opposition “misguided and shortsighted” in a statement last week. Mr. Icahn said in his statement that he informed the Securities and Exchange Commission he will no longer solicit proxies to vote against the transaction. (Lombardo, 8/13)
Bloomberg:
Icahn Drops Fight To Block Cigna's Express Scripts Takeover
“In light of the ISS and Glass Lewis recommendations in favor of the Cigna/Express Scripts transaction and the significant stockholder overlap between the companies, we have informed the SEC we no longer intend to solicit proxies to vote against the transaction,” Icahn said Monday in a statement. (Deveau, 8/13)
