Cigna is terminating the merger with Anthem after a federal judge blocked the deal on anti-competitive grounds.
Cigna is done with its proposed merger with Anthem and wants damages for their rivals inability to get the deal approved.
The health insurance company said it was terminating the merger with rival Anthem after a federal judge blocked the deal over anti-competitive grounds.
Additionally, Cigna will sue Anthem for a $1.85 billion reverse break-up fee and an additional $13 billion in damages according to a filing with the Securities and Exchange Commission.
Cigna claims that the $13 billion is to make up for "the lost premium value to Cigna's shareholders caused by Anthem's willful breaches of the Merger Agreement" and that the company was "disappointed in the outcome" of the merger process.
"Cigna believed from the outset that the merger of the two companies had the potential to expand choice, improve affordability and quality and further accelerate value-based care," said a press release from Cigna.
"Anthem contracted for and assumed full responsibility to lead the federal and state regulatory approval process, as well as the litigation strategy, under the merger agreement. Cigna fulfilled all of its contractual obligations and fully cooperated with Anthem throughout the approval process."
The merger would have made the combined company the largest health insurer in the US based on the number of lives covered.
One of the factors in the decision by a federal judge to block the merger was Cigna's seeming distaste with the deal during court proceedings.
More to come...
from pulse.ng - Nigeria's entertainment & lifestyle platform online http://ift.tt/2kun5cz
via IFTTT
