- Cigna stated in a Friday regulatory filing that its pending acquisition by Anthem may not be completed within 2016, Bloomberg reported.
- Shares for both insurers dipped slightly after the news at 10:30 a.m. on Friday, with Cigna dropping 1.9% to $132.40 and Anthem dropping less than 1% to $136.77, Bloomberg noted.
- Meanwhile, Anthem spokeswoman Jill Becher told the media Anthem still expects the deal to close in the second half of this year as previously estimated.
Cigna did not specify why it forsees a potential delay and simply pointed toward the ongoing regulatory process that requires approval from the Justice Department’s antitrust division and state regulators.
“This disclosure reflects our current understanding, based on the breadth and depth of the review and where we believe we are in the process now,” Bloomberg quoted Cigna spokesman Matt Asensio. “We feel that it’s a dynamic environment, and there’s a lot of complexity in the regulatory process, so it’s possible that the approvals may not be obtained in 2016.”
The disclosure raises questions as to whether the deal may be troubled due to difficulties with the approval or a lengthy delay.
Cigna noted in its filing Anthem could owe the company a breakup fee of $1.85 billion if the deal isn’t finalized by Jan. 31, 2017, though it adds that deadline could be extended to April 30.