Anthem sues Cigna to block deal termination

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By Ankur Banerjee

<span class="articleLocation”>Anthem Inc said on Wednesday it has
filed a lawsuit seeking to block smaller rival Cigna Corp
from terminating their proposed $54 billion deal, which would
have created the largest U.S. health insurer by membership.

Cigna said on Tuesday it had notified Anthem it had ended
the deal and that Anthem was required to pay a $1.85 billion
break-up fee.

Cigna also filed a lawsuit in Delaware on Tuesday, seeking
legal sanction for its decision to end the deal and approval for
$13 billion in damages for its shareholders who did not receive
the takeover premium.

Anthem in its lawsuit, which was also filed in Delaware, is
seeking a temporary restraining order to prevent Cigna from
ending the deal, arguing there is still enough time to complete
the transaction.

A federal judge last week ruled against Anthem’s proposed
merger with Cigna, saying the combined company would have
worsened an already highly concentrated market. The U.S. Justice
Department sued in July 2016 to stop the deal.

Anthem said it is pursuing an expedited appeal of the court
decision and is committed to complete the merger either through
a successful appeal or through a settlement with the new
leadership at the Justice Department.

Also on Tuesday, Aetna Inc and Humana Inc
walked away from their $34 billion merger on Tuesday weeks after
a separate judge blocked their deal on similar grounds.



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