Fri, Jul. 24, 6:15 AM
- Anthem (NYSE:ANTM) has agreed to buy Cigna (NYSE:CI) in a deal valued at $54.2B, wrapping up a year of negotiations and creating the largest health insurer in the U.S.
- Cigna shareholders will get $103.40 per share in cash and 0.5152 Anthem shares.
- The deal comes three weeks after Aetna (NYSE:AET) struck a deal to buy Humana (NYSE:HUM) for $37B and is part of an industry-wide consolidation following the roll-out of Obamacare.
Wed, Jul. 22, 6:30 PM
- Anthem (NYSE:ANTM) is close to a deal to buy Cigna (NYSE:CI) for around $187/share -- more than $48B total -- that could be announced as soon as tomorrow afternoon, Dow Jones is reporting.
- The move would create the country's largest insurer, with a combined current market cap of just over $80B.
- Cigna had rejected an earlier $47.5B bid as "inadequate."
- If this deal and Aetna's $34B agreement to buy Humana are both approved and finished, the five major U.S. health insurers would drop to three.
- After hours: CI +7.2%; ANTM -0.5%.
- Previously: Anthem and Cigna at the table again over possible merger (Jul. 02 2015)
Thu, Jul. 2, 10:15 AM
- According to the Wall Street Journal, health insurers Anthem (ANTM -0.4%) and Cigna (CI +1.8%) are again in talks about a possible merger. Cigna rejected Anthem's earlier $47.5B bid, calling it "inadequate and not in the best interests of Cigna's shareholders."
- Anthem's market cap is $43.6B while Cigna's is $42.3B.
Mon, Jun. 22, 10:08 AM| Mon, Jun. 22, 10:08 AM | 1 Comment
Sun, Jun. 21, 4:50 PM
- Cigna (NYSE:CI) has rejected Anthem's (NYSE:ANTM) $184/share offer for the company, saying its board unanimously determined that the offer was "inadequate."
- "We are deeply disappointed with your recent actions," Cigna's board wrote in a letter to Anthem. "We have been engaged in good faith discussions with Anthem to determine whether a potential strategic combination is in the best interests of Cigna’s shareholders.”
- Previously: Anthem goes after Cigna with $54B bid (Jun. 20 2015)
- Previously: Aetna makes takeover proposal to Humana: WSJ (Jun. 20 2015)
- Previously: Consolidation talk hits the health-insurance sector (Jun. 16 2015)
Sat, Jun. 20, 5:10 PM
- Anthem (NYSE:ANTM) has boosted its takeover offer for Cigna (NYSE:CI) and is going public with the bid after the two sides failed to reach agreement.
- Anthem's $184/share bid (cash and 31% stock) reflects a 35.4% premium to unaffected Cigna price on May 28.
- Anthem’s pursuit of Cigna comes as Cigna is eying Humana (NYSE:HUM), which has put itself up for sale, and whom now appears to be on Aetna's (NYSE:AET) radar screen.
- The five big managed-care companies are jockeying for deals that will enable them to get more efficient and better respond to changes in the healthcare landscape. Analysts say regulators will only allow one or two such combinations.
- "Anthem has been engaged with Cigna to explore a potential combination since August 2014 and is making its proposal public today following Cigna's refusal to reasonably negotiate and its insistence on securing governance matters that are not common practice in similar transactions."
- Source: press release
Mon, Jun. 15, 12:18 PM
- The two companies have been in discussions for months and within the last ten days Anthem (ANTM +1.9%) has made two bids for Cigna (CI +9.5%), with the last being about $175 per share.
- So far, Anthem's efforts have been rebuffed by Cigna.
- Source: WSJ
- Previously: Humana spikes 20% after WSJ report says it wants to sell itself (May 29)
Fri, May 29, 2:12 PM
- Humana (HUM +19.6%) surges following a WSJ report that it is exploring a potential sale after receiving indications of takeover interest, and has hired Goldman Sachs to help it explore a potential sale.
- Sources say Aetna (AET +2.2%) and Cigna (CI +5.2%) are among companies that have held preliminary discussions with HUM.
- HUM is one of five health insurers that bankers and analysts have long considered ripe for consolidating the industry, including AET, CI, UnitedHealth (UNH +1%) and Anthem (ANTM +2.6%).
Thu, Mar. 19, 10:34 AM
- According to Bloomberg, major providers of Medicare coverage like Humana (HUM +0.9%), WellCare (WCG +0.6%) and Centene (CNC +1.4%) are high on the acquisition radar of large insurers who have relatively modest exposure to the rapidly growing Obamacare-stoked space. Likely suitors would be Aetna (AET +1.3%) and Anthem (ANTM +0.3%).
- There hasn't been much M&A activity among health insurers due to the uncertainties surrounding the implementation of the Patient Protection and Affordable Care Act. Now that its implications are better understood, the number of deals should perk up.
- No bargains are out there, though. S&P's index of health insurers galloped 57% last year. The current valuations for Humana, WellCare and Centene are $26.9B, $4.1B and $8.3B, respectively, all at record levels since at least 2007.
- Anthem CFO Wayne DeVeydt says his firm will continue to make smaller deals although a larger purchase is not out of the question. Other firms declined to comment.
- Leerink Partners analyst Ana Gupte says a likely scenario is consolidation among the five largest health insurers: UnitedHealth Group (UNH +0.8%), Anthem, Aetna, Cigna (CI +0.6%) and Humana.
- Aging baby boomers, born between 1946 and 1964, are driving the increase in Medicare enrollment. Membership is expected to rise to 68.4M in 2023, up more than 25% from this year's 54.4M. Medicaid is projected to add 9.3M people over the same time frame.
May 10, 2012, 5:52 PMCigna (CI) agrees to acquire American Financial Group's (AFG) supplemental health insurance group for ~$295M in cash. CI says the deal provides significant opportunities for growth; AFG expects an after-tax gain of $95M-$105M from the sale, which is expected to close in H2 2012. | May 10, 2012, 5:52 PM | Comment!
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