Thu, Sep. 22, 3:01 AM
- Anthem (NYSE:ANTM) and Cigna (NYSE:CI) have accused one another of violating the terms of their merger agreement, according to the Justice Department, which is suing to block the health-insurance deal on antitrust grounds.
- The claim is part of the DOJ's argument stating efficiencies from the insurers' $45B transaction will likely not bear out.
- Other disagreements between Anthem and Cigna became public in the spring.
Mon, Aug. 29, 1:38 AM
- According to an analysis by the Kaiser Family Foundation, nearly a third of U.S. counties will likely be served by only one insurer that participates in an Affordable Care Act marketplace in 2017, representing an increase from 7% this year.
- The data underscores the degree to which industry retrenchment from low enrollment and high service costs is curtailing options within the marketplaces.
- Insurer departures will likely lead to higher prices, analysts have warned.
- Related tickers: UNH, AET, ANTM, CI, HUM, WCG, CNC, MOH, GTS, HQY
Fri, Aug. 12, 5:48 PM
- The judge overseeing the Justice Department's bid to stop Anthem (NYSE:ANTM) from merging with Cigna (NYSE:CI) says she will not rule on the deal until early next year, as she sets a Nov. 21 trial date.
- ANTM had sought a ruling by the end of the year because it said it needed time to wrap up merger reviews by state insurance commissioners by April 30, a deadline the companies set to complete the deal.
- CI may be unwilling to agree to extend the deadline because of the contentious relationship between the two companies; also, if the deal does not close by April 30, CI can walk away with a $1.85B breakup fee.
- The stocks had rallied in today's trade, with CI closing +5.2% and ANTM +1.5%, after a DoJ lawyer said the U.S. government is open to a settlement over the merger.
Mon, Aug. 8, 7:44 AM
- Cigna (NYSE:CI) met with investors last week to discuss its merger with Anthem (NYSE:ANTM) and talk about Plan B - stock buybacks or acquisitions - if the deal falls apart, according to notes from Wolfe Research and Goldman Sachs.
- "This is a sign that Cigna doesn't think that the deal's going to happen," said Les Funtleyder of E Squared Asset Management. "Why would you take the time and expense to meet with investors if you thought that in the short term there was going to be a transaction?"
- With $2.45B in cash and equivalents at the end of June, plus short-term investments and a $1.85B breakup fee from Anthem, Cigna could have more than $5B to spend by the middle of next year (and could spend even more by taking on debt).
Fri, Aug. 5, 12:57 PM
- The judge overseeing two U.S. cases challenging mergers among four of the biggest health insurers gave up one, saying he will keep the case against Aetna's (AET +2.4%) deal for Humana (HUM +2.8%) while leaving the challenge to Anthem’s (ANTM +0.7%) takeover of Cigna (CI -0.1%) to another judge.
- The decision is seen improving the odds for rulings on both mergers by year-end and lowering the chance that they fall apart beforehand.
- Judge Bates, a Republican who has ruled against the government in the past and has voiced skepticism of various Justice Department actions, is considered more favorable towards the proposed AET-HUM deal, while the judge assigned to the ANTM-CI case is a Democrat appointed to the bench by Pres. Obama.
Wed, Aug. 3, 10:08 AM
- Anthem (ANTM +0.8%) has asked a judge to decide on its deal for Cigna (CI +0.8%) by the end of the year and to split its case off from the government's challenge of a second merger of insurance companies.
- The DOJ filed lawsuits on July 21 asking a federal court to stop its takeover as well as Aetna's planned acquisition of Humana.
- How are they different? Anthem is arguing that while all four companies are health insurers, its deal is concentrated on commercial health insurance while the other merger is focused on Medicare Advantage.
Fri, Jul. 29, 11:13 AM
- CIGNA (CI -4.7%) Q2 results: Total Revenues: $9,960M (+4.9%); Adjusted Operating Income: $515M (-22.4%); Net Income: $510M (-13.3%); EPS: $1.97 (-12.8%); Non-GAAP EPS: $1.98 (-22.4%); Quick Assets: $2B.
- 2016 Guidance: Adjusted income from operations: $2.02B - 2.11B; Adjusted income from operations per share: $7.75 - 8.10.
Fri, Jul. 29, 9:22 AM
Fri, Jul. 29, 8:56 AM
- Cigna (NYSE:CI) -8% premarket after reporting lower than expected Q2 earnings and cutting its full-year earnings outlook, results that may take on extra weight amid questions about the prospects of its acquisition by Anthem.
- CI says its disability, life and accident insurance business swung to a $12M operating loss in Q2 from a $106M a year earlier, following modifications to its claims management process implemented in Q1.
- CI says it spent $0.788 of every premium dollar on medical claims in its commercial business, up from $0.775 per dollar a year ago; in the government business, the medical loss ratio was $0.864 per dollar vs. $0.844 a year ago.
- CI says medical membership held steady at 15.1M.
- For FY 2016, CI says it now sees EPS of $7.75-$8.10 vs. $9.28 analyst consensus estimate and prior guidance of $8.95-$9.35; it forecasts full-year revenues to grow by mid single digits vs. consensus +5.7% Y/Y and $39.8B.
Fri, Jul. 29, 6:01 AM
Thu, Jul. 28, 5:30 PM
Thu, Jul. 21, 10:38 AM
- It's official. The U.S. Department of Justice (DOJ) has filed an antitrust suit in U.S. District Court in Washington, DC attempting to block the Anthem (ANTM +1.8%) and Cigna (CI +0.8%) merger and the Aetna (AET +0.9%) and Humana (HUM -0.4%) merger. In the complaint, the DOJ said the deals would be anti-competitive and would not be in the best interests of consumers.
- Unsurprisingly, the four companies take the opposite view.
Tue, Jul. 19, 10:37 AM
- According to Bloomberg, the U.S. is preparing litigation to block the Anthem (ANTM -2.2%)/Cigna (CI -2%) and Aetna (AET -3.5%)/Humana (HUM -4.2%) mergers over antitrust concerns.
- Previously: Humana, Aetna slide on chatter over Justice Dept. meeting (July 7)
- Previously: Anthem-Cigna deal in jeopardy? (June 30)
- Update: The Department of Justice filed an antitrust lawsuit on July 21 opposing both mergers.
Fri, Jul. 15, 10:10 AM
- Wells Fargo ticks off 20 S&P 500 stocks with the most upside potential vs. consensus, and the 20 with the most downside risk vs. consensus.
- The list is compiled by comparing the midpoint of Wells Fargo Securities valuation ranges to consensus fair value estimates, volatility adjusting the percentage difference, and ranking the resulting score.
- Upside: AEE, BEN, CCL, DVA, EIX, ES, EXC, FTR, HUM, INTC, JNJ, LNT, PEG, PNW, SCG, T, WEC, WU, XEL, XOM.
- Downside: ANTM, C, CI, COF, EQT, FOXA, FSLR, GS, KIM, LH, MON, MSI, MYL, NVDA, NWSA, SLG, TIF, TSO, UA, WLTW.
Thu, Jul. 7, 12:55 PM
- Humana (NYSE:HUM) has tumbled, now down 7.8% in the past few minutes, on chatter that it and Aetna are to meet with the Justice Dept. to discuss "significant" concerns.
- Other insurers took a dip on the news. Aetna (NYSE:AET), set for a $37B takeover of Humana, has slid from positive ground to a 1.5% loss on the day. UnitedHealth (NYSE:UNH) is off 0.7%. Cigna (NYSE:CI) has fallen into the red, -0.4%.
- Reports had Aetna set to sell several billion dollars worth of assets to ease regulatory concerns over the deal.
Thu, Jun. 30, 3:50 AM
- The Justice Department has told Anthem (NYSE:ANTM) its planned takeover of Cigna (NYSE:CI) threatens competition and probably can't be fixed by selling parts of their businesses, Bloomberg reports.
- The companies recently met with Bill Baer, the department's No. 3 official, in a bid to get the $48B deal approved. A decision on the combination is expected by mid-July.