Cigna rejects latest takeover bid from Anthem

Cigna has rejected Anthem's latest takeover bid, according to The New York Times.

The most recent takeover bid from Anthem, which was made public over the weekend, was $184 a share in cash and stock for Cigna, according to the report, which relied on information from people familiar with the matter.

Cigna rejected the offer, calling it "inadequate and not in the best interests of Cigna’s shareholders."

A key source of contention has been corporate governance issues, and, specifically, who would run the combined insurer, according to the report.

In a statement, Anthem said Cigna has lobbied for its CEO, David Cordani, to be immediately appointed CEO of the combined company or that Anthem find an acceptable position for his specific roles and responsibilities as well as the timing for a transition to CEO. Cigna, on the other hand, has expressed concerns about the future role of Joseph Swedish, president and CEO of Anthem.

Cigna said it is also worried about Anthem's "lack of a growth strategy," complications relating to Anthem's membership in the Blue Cross Blue Shield Association and the related antitrust actions, and other significant challenges, such as the massive data breach Anthem experienced in February.

The news comes amid an endless stream of takeover talks in the health insurance sector: Aetna and Cigna have both shown interest in taking over Humana; Anthem has made numerous takeover bids for Cigna, which Cigna has rejected; and UnitedHealth Group approached Aetna about a takeover deal.


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