Cigna's board of directors called out activist investor Carl Icahn for publicly opposing the company's proposed $54 billion takeover of Express Scripts, urging shareholders to support the deal in an Aug. 7 letter.
Earlier on Aug. 7, Mr. Icahn sent an open letter to shareholders calling on them to vote against Cigna's proposed takeover of the pharmacy benefits manager. He dubbed the deal a "$60 billion folly" with too high a price tag.
Cigna slammed Mr. Icahn's opposition in its response letter to shareholders. The health insurer said neither Mr. Icahn nor his representatives expressed concern to Cigna about the deal since it was announced March 8. Cigna added Mr. Icahn owns about one half of one percent of Cigna's stock, and has a "substantial" short position in Express Scripts.
Mr. Icahn, who has nine businesses that contract with Express Scripts, has an "uninformed view of the current healthcare marketplace and Cigna's strategy," Cigna said. While Mr. Icahn argues a multiyear partnership with an existing pharmacy benefits manager would have greater gains for Cigna than a merger, the health insurer disagreed.
"The notion that we can negotiate a complex multi-year agreement with a third party that will allow us to deliver attractive PBM affordability to our clients and customers while the rest of the industry reformats itself is naïve at best," the company said.
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