Here are three things to know.
1. After a U.S. District Court decided Feb. 8 to block Anthem’s proposed $54 billion merger with Cigna over antitrust concerns, Cigna said Tuesday the “transaction cannot and will not achieve regulatory approval and that terminating the agreement is in the best interest of Cigna’s shareholders.”
2. In addition to terminating its merger agreement, Cigna sued Anthem in the Delaware Court of Chancery, arguing that as noted under the original agreement, Anthem must pay Cigna a $1.85 billion breakup fee for failing to successfully complete the merger. Cigna also plans to sue the insurer for an additional $13 billion in damages, including the amount of premium Cigna shareholders did not realize as a result of the failed merger proceedings.
3. An Anthem spokesperson told CNBC that Anthem extended the merger agreement deadline until April 30 and Cigna “does not have a right to terminate the agreement” unilaterally. Anthem called the termination “invalid” and said it “will continue to enforce its rights under the merger agreement and remains committed to closing the transaction,” according to the report. Anthem filed an appeal of the federal judge’s decision Monday.
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