Cigna has turned down a takeover bid from rival health insurer Anthem.
Cigna’s board says it has “unanimously determined the proposal is inadequate and not in the best interests of Cigna’s shareholders.”
On Saturday, Anthem made public its offer of US$184 per share in cash and stock for Cigna.
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The combined company would have more than US$115 billion in annual revenue.
“This combination is the absolute best strategy for both organizations to maximize the potential and lead the transformation of the health care industry,” says Anthem president and CEO Joseph Swedish.
Anthem says it has been engaged with Cigna to explore a potential combination since August 2014 and made its proposal public following Cigna’s “refusal to reasonably negotiate and its insistence on securing governance matters that are not common practice in similar transactions.”
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