Dive Brief:
- Anthem is said to have made multiple offers to purchase Cigna at prices of up to $175 per share, according to anonymous sources quoted by the Wall Street Journal.
- Despite months of discussions between the two, Cigna has rejected the offers, the Wall Street Journal says.
- The market appears to be an undecided game of musical chairs; Aetna and Cigna have also been named as the two most likely candidates to purchase Humana, which is remaining quiet on its possible plans to sell.
Dive Insight:
Anthem and Cigna both declined to speak to the media about the speculation of a merger, but that isn't preventing the news from making an impact.
As the Wall Street Journal notes, Cigna's stock increased by more than $16 per share after the report, while Anthem's increased more than $4 per share. Humana, meanwhile, saw its stck take a small hit as it dropped more than $2 per share.
With each company focused on different products, any mergers will impact the balance of the market, reduce the level of competition and help the combined companies better absorb risk.