Results 1 to 2 of 2
Thread Information
Users Browsing this Thread
There are currently 1 users browsing this thread. (0 members and 1 guests)
-
07-24-2015, 12:12 PM #1
Health Insurer Anthem to Buy Cigna in $54.2 BILLION Deal
Health Insurer Anthem to Buy Cigna in $54.2B Deal
Published July 24, 2015 Reuters
The office building of health insurer Anthem is seen in Los Angeles, California February 5, 2015. REUTERS/Gus Ruelas (Reuters)
Anthem Inc said on Friday it would buy Cigna Corp in a deal valued at $54.2 billion, creating the largest U.S. health insurer by membership.
The deal — the biggest ever in the health insurance industry — comes three weeks after Aetna Inc agreed to buy Humana Inc for $37 billion and is part of an industry-wide consolidation following the roll-out of President Barack Obama's healthcare law.
Antitrust authorities are expected to aggressively scrutinize how the combinations will affect competition for Medicare and individual and commercial insurance.
By most measures, U.S. insurance markets are extremely concentrated. That means companies could have trouble selling assets if forced to do so by antitrust regulators.
Anthem said it expects the deal to close in the second half of 2016, indicating a long regulatory road ahead.
Anthem and Cigna are two of just four major insurers that administer self-insured plans for major companies. The other two are UnitedHealth Group Inc and Aetna.
UnitedHealth is currently the biggest U.S. health insurer by membership, while Anthem and Cigna rank No. 2 and No. 4.
"When you go from four to three national players, that creates a significant issue," said Matthew Cantor of law firm Constantine Cannon LLP.
Anthem said it was confident it would get all necessary regulatory and other approvals.
The combined company would have about 53 million members.
UnitedHealth had 45.86 million members as of June 30.
Growing concerns about market concentration came into sharp focus earlier this year when regulatory concerns scuttled Comcast Corp's $45 billion bid for Time Warner Cable Inc.
LOWER COSTS
Anthem said it will pay $103.40 in cash and 0.5152 of its shares for every Cigna share.
The deal is valued at $183.36 per share based on Anthem's Thursday close of $155.21.
Cigna shares were up 0.2 percent at $154.68 in premarket trading, while Anthem shares were up 0.5 percent at $156.06.
The equity portion of the offer is valued at $49.11 billion, according to Reuters calculations based on 261.2 million Cigna shares outstanding as of March 31.
Anthem said the offer is valued at $188 per share, based on its unaffected share price as of May 28 before reports that the two companies were in talks.
The company has said the acquisition will help it reduce costs and allow it to negotiate lower prices with doctors and hospitals.
The combined company will be led by Anthem Chief Executive Joseph Swedish.Cigna Chief Executive David Cordani will be president and chief operating officer.
Anthem's lead financial adviser is UBS Investment Bank. Credit Suisse also served as financial adviser, and White & Case LLP as legal adviser.
Morgan Stanley is Cigna's financial adviser and Cravath, Swaine & Moore LLP its legal adviser.
http://www.foxbusiness.com/industrie...marketfeatures
NO AMNESTY
Don't reward the criminal actions of millions of illegal aliens by giving them citizenship.
Sign in and post comments here.
Please support our fight against illegal immigration by joining ALIPAC's email alerts here https://eepurl.com/cktGTn
-
07-24-2015, 02:43 PM #2NO AMNESTY
Don't reward the criminal actions of millions of illegal aliens by giving them citizenship.
Sign in and post comments here.
Please support our fight against illegal immigration by joining ALIPAC's email alerts here https://eepurl.com/cktGTn
Similar Threads
-
Insurer Anthem Reveals Hack of 80 Million Customer, Employee Accounts
By JohnDoe2 in forum Other Topics News and IssuesReplies: 0Last Post: 02-05-2015, 12:15 AM -
Largest health insurer to keep key parts of law regardless of court ruling
By Newmexican in forum Other Topics News and IssuesReplies: 0Last Post: 06-11-2012, 12:13 PM -
Treasury To Sell More AIG Stock, Insurer Says 'We'll Take $2 Billion Worth'
By JohnDoe2 in forum Other Topics News and IssuesReplies: 0Last Post: 05-04-2012, 06:00 PM -
AIG Offering Raises $8.7 Billion for U.S., Insurer
By JohnDoe2 in forum Other Topics News and IssuesReplies: 0Last Post: 05-24-2011, 07:54 PM -
Health Insurer Profits Jumped 250% in Last Decade
By Texas2step in forum Other Topics News and IssuesReplies: 0Last Post: 02-19-2010, 10:40 AM
Mike Johnson betrays border security for more foreign aid
04-18-2024, 10:31 PM in illegal immigration News Stories & Reports