Cigna rejects $48 billion Anthem takeover, sues for damages

Cigna rejects $48 billion Anthem takeover, sues for damages

February 14th, 2017 by Associated Press in Breaking News

FILE - In this Nov. 17, 2009 file photo, a pedestrian walks past the headquarters of the health insurer Cigna Corp. in in Philadelphia. A federal judge on Wednesday, Feb. 8, 2017, rejected Anthem Inc.'s bid to buy rival health insurer Cigna Corp., saying the merger would likely lead to higher costs, less competition and diminished innovation. U.S. District Judge Amy Berman Jackson said the merger would significantly reduce competition in the already concentrated insurance market, particularly for large national employers. (AP Photo/Matt Rourke, File)

Photo by The Associated Press /Times Free Press.

Cigna says it is rejecting Anthem's proposed $48 billion acquisition bid and suing the Blue Cross-Blue Shield insurer.

The announcement comes hours after another major insurer, Aetna, said it was abandoning its planned $34 billion purchase of Medicare Advantage provider Humana.

The Department of Justice sued last summer to stop the deals due to concerns about how they would affect prices and consumer choices. Federal judges rejected both deals in separate rulings earlier this year.

Anthem Inc. had filed paperwork Monday to appeal its case.

Cigna Corp. says it is seeking a $1.85 billion termination fee from Anthem and more than $13 billion in damages caused by what it says were Anthem's breaches of the merger agreement.

An Anthem spokeswoman did not immediately return a call seeking comment.

Anthem is the parent company of Blue Cross and Blue Shield of Georgia.


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