Anthem will not stop trying to buy Cigna
On Monday, the health care company reiterated its offer to buy Cigna for $184 per share.
Just yesterday, Cigna rejected an offer, worth $47 billion, in a strongly worded statement.
Cigna said the terms of the deal "woefully skewed in favor of Anthem shareholders."
In a statement, Anthem CEO Joseph Swedish wrote:
"The proposal we submitted to Cigna presents significant and compelling value for shareholders in a transaction that would bring together two highly complementary platforms with a powerful growth potential. Our management team has delivered consistently strong returns for shareholders and is absolutely confident in its ability to achieve the value inherent in this transaction."
In premarket trading, Cigna shares rallied by as much as 8%, while Anthem shares were up more than 2%.
Anthem had made private bids only recently went public with its offer. Cigna refused because its CEO would have been set aside, Anthem said.
This is part of a big jostle for consolidation among the biggest health insurers. They argue that mergers would help them cut costs and remain competitive.
In the statement Monday, Anthem noted that the deal would amount to about $2 billion in cost-saving synergies over the next two years.