Health insurer Cigna (NYSE:CI) announced it will end to its planned merger with rival Anthem (NYSE:ANTM), following a judge’s decision that the proposed tie-up would be anti-competitive – and said on Tuesday it was suing Anthem seeking a reverse $1.85bn termination fee and additional damages “in an amount exceeding $13bn.”
Cigna said in a statement that the damages it is seeking includes lost premium value to its shareholders as a result of what it has alleged were Anthem’s breaches of their merger agreement.
Anthem maintains that Cigna has no right to unilaterally pull the plug:
“Under the terms of the merger agreement, Cigna does not have a right to terminate the agreement. Therefore, Cigna’s purported termination of the merger agreement is invalid. Anthem will continue to enforce its rights under the merger agreement and remains committed to closing the transaction.”
Cigna shares were up 0.5% at $146.58 while Anthem were down 0.2% at $163.22 on Tuesday.
Story by ProactiveInvestors