- Cigna has rejected another offer from Anthem, this time for $47 billion. The insurer said that the terms of the offer were inadequate and "woefully skewed in favor of Anthem shareholders."
- The offer works out at about $184 for each Cigna share, or around an 18% premium on Cigna's closing price on Friday. This is the fifth proposal Anthem has made to acquire Cigna—and the first public one.
- The combined companies would have annual revenue of over $115 billion and cover 53 million lives, according to Anthem.
Despite a snappy response from Cigna—only a day after Anthem made its offer public—it's unclear if this deal is dead yet. The company said Sunday that "under the right circumstances," a deal with Anthem would provide substantial benefits to all stakeholders. That said, a letter signed by two top Cigna officials expressed disappointment in the offer and outlined a couple of obstacles, including possible regulatory scrutiny and the handling of the massive Anthem breach earlier this year. The letter was signed by Cigna CEO David Cordani and board chairman Isaiah Harris Jr. The letter also referred to "Anthem's lack of a growth strategy" and noted that Cigna's stock has out-performed its larger rival in recent years.
Another challenge the deal faces is leadership. Anthem wants CEO Joe Swedish to assume a level of responsibility that Cigna on Sunday objected to—the company wants Swedish to act as president, CEO, chairman and "head of integration" for the combined companies. The Cigna letter called the proposed scope of his authority "disconcerting and risky."