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Cigna surges on Anthem takeover report

Cigna surges on Anthem takeover report

Shares of Cigna (CI) surged Monday following a report the health insurance giant has been approached by rival Anthem (ANTM) in a potential takeover overture. Cigna shares were up 12.18% in afternoon trading at $154.04 following a report in The Wall Street Journal that Anthem had made two recent acquisition bids, the most recent in the range of $175 a share.635699710046601417-AP-Anthem-Hack

Bloomfield, Ct.-based Cigna rejected the overtures, the Journal reported, citing unidentified people familiar with the matter. Anthem shares were up 2.18% at $164.21 in afternoon trading. Jill Becher, an Anthem spokeswoman, said the Indianapolis-based company would not comment on “rumors or speculation.” Cigna did not immediately respond to a message seeking comment. Such a takeover, if finalized, could increase consolidation of the U.S. health insurance industry.

Shares of Humana, (HUM), another of the largest U.S. health insurers, closed up 20% on May 29 following reports that the company was exploring a potential sale with investment bank Goldman Sachs advising on potential interest from Cigna and Aetna (AET). Ana Gupte, a senior research analyst with Leerink Partners, wrote in a report as the Louisville-based company’s stock price soared that a Humana sale would represent “a trigger event in a managed care industry overdue for consolidation.”

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