Cigna to reject Anthem takeover bid
Updated : 09:17
US health insurer Cigna has rebuffed an offer from larger rival Anthem, which made two takeover bids within the last 10 days, The Wall Street Journal reported on Monday citing people familiar with the matter.
Indianapolis-based Anthem has offered $175 a share for Cigna, valuing the fourth largest health insurer at almost $45bn excluding debt.
Read more: Health-care deal activity heats up as Anthem launches second bid for rival
There have been a number of potential deals by US health insurers, who are looking to buy smaller rivals to merge with and cut costs, as they cope with changes under the US Affordable Care Act, also known as “Obamacare”, through which 12m Americans can get subsidies to buy their own plans.
Cigna manages health insurance for large companies and sells health plans on government exchanges created under Obamacare, while Anthem was also created under this regulation but serves individual exchanges.
UnitedHealth, another big player in the insurance field, could be also eyeing Cigna, according to people familiar with the matter.
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