Anthem sees its more than $47 billion bid to buy rival Cigna as a way to muscle up on technology that helps consumers and to strengthen its rapidly growing Medicare Advantage business.
Leaders of the Blue Cross-Blue Shield insurer reaffirmed Monday their commitment to getting a deal done a day after Cigna shot down the idea in a letter delivered to Anthem’s board.
“We think we’ve put forward a very compelling offer,” Anthem chief financial officer Wayne DeVeydt said when asked by an analyst during a conference call whether his company would consider raising its price.
The combination would create a health insurer with international reach that covers more than 53 million people, making it the largest in the United States based on enrollment. Anthem’s most recent offer amounted to $184 per share in cash and stock, which represents a premium of more than 35 percent to the closing price of Cigna shares in late May, before reports of industry merger talks started heating up.
But Bloomfield, Conn.-based Cigna Corp. in a letter Sunday to Anthem’s board said it saw a number of obstacles standing in the way of a deal that “under the right circumstances” would provide substantial benefits to consumers, doctors and investors.
Analysts and other experts are expecting consolidation at the top of a health insurance industry that has had to adjust to the health care overhaul and is dealing with slow growth in the biggest piece of its market, employer-sponsored health insurance. They see several potential advantages to a big combination.
