Anthem Backs Rejected Cigna Bid, Sets Call to Review Deal

   By Lisa Beilfuss 
 

Anthem Inc. (ANTM) on Monday said it is backing its $47.5 billion bid for Cigna Corp. (CI), a day after Cigna rejected the offer.

The company has scheduled a conference call and webcast at 11:00 a.m. EDT to review the proposal that Chief Executive Joseph Swedish calls a "significant and compelling value for shareholders in a transaction that would bring together two highly complementary platforms."

Anthem on Saturday went public with its bid to acquire Cigna for $184 in cash and stock, seen as a move to influence Cigna through its shareholders. Cigna called the offer "inadequate" and said a key sticking point is who would run the combined company.

Anthem's pursuit of Cigna comes as Cigna as well as Aetna Inc. (AET) size up Humana Inc. (HUM), which has privately offered itself for sale. The five big managed-care companies are jockeying for deals that will enable them to become more efficient and better respond to changes in the health-care landscape in the U.S. brought on by the Affordable Care Act and other developments.

Cigna shares rose 7.5% premarket, while Anthem shares gained 2.4%.

Write to Lisa Beilfuss at [e-mail]

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