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Anthem raises bid to $54 billion for Cigna

Anthem raises bid to $54 billion for Cigna

Health insurer Anthem said Saturday it offered $184 per share in cash and stock for smaller rival Cigna. In a statement, Anthem, the second-largest health insurer in the USA, said the deal, worth about $54 billion, was its fourth bid for Cigna in June.Image result for cigna

The statement included a letter to Cigna’s board, in which Anthem said it raised the offer in response to Cigna’s requests, but it could not guarantee the CEO role would eventually go to Cigna CEO David Cordani. A Cigna spokesman had no comment.

If finalized, an Anthem takeover of Cigna would step up the anticipated consolidation of the U.S. health insurance industry. Shares of Humana, 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.

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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