Cigna CEO fights back against Carl Icahn's criticism of US$54bn Express Scripts takeover

David Cordani, CEO of Cigna Corp (NYSE:CIG), hit back against Carl Icahn Wednesday, saying that he was disappointed that the activist investor hadn’t approached him first about his scathing opposition to the health insurer’s takeover of Express Scripts Holding Co (NASDAQ:ESRX).

“We’re disappointed that he chose that, his means of communication was an open letter,” Cordani told CNBC, adding that Icahn had made no attempt to contact the company directly.

On Tuesday, Icahn published a biting open letter in which he expressed his distaste for Cigna’s US$54bn plan to buy Express Scripts Holdings, which he derides as a $60bn folly that comes with a “ridiculous” price target.

“Cigna is dramatically overpaying for a highly challenged Express Scripts that is facing existential risks on several fronts,” wrote Icahn in his lengthy letter.

“It is imperative that every Cigna shareholder vote against this transaction,” he added.

Read: Carl Icahn urges Cigna shareholders to vote against ‘ridiculous’ Cigna-Express Scripts deal

Cigna is still saying that its acquisition of Express Scripts will offer the chance to slash health-care costs and provide better care for the insured.

But Icahn is telling other investors the deal is ill-fated and expressing concerns about ferocious competition from Amazon.com Inc (NASDAQ:AMZN), which recently acquired the online pharmacy PillPack.

Icahn and his conglomerate Icahn Enterprises reportedly own about a 0.56% stake in Cigna, according to published reports.

Express Scripts operates a pharmacy benefit management company with large operations in the US and Canada. The company also operates home delivery pharmacies and 34 specialty branch pharmacies.

Story by ProactiveInvestors