In a fiery response, Cigna Corp. rejected a $ 54-billion takeover bid from Anthem Inc. and unleashed several criticisms of the health insurance giant.
Cigna said Sunday that the $ 184-a-share offer was inadequate and not in the best interests of its shareholders.
The nation’s fifth-largest health insurer expressed frustration with Anthem taking its private negotiations public a day earlier and for failing to address key issues such as the fallout from a massive data breach at Anthem this year.
Cigna also questioned Anthem’s ability to overcome antitrust concerns raised by the deal and whether its chief executive was up to the task of leading the combined company.
All this comes amid an industrywide scramble for merger partners that could dramatically reshape the market for employers, consumers and government programs.
Health insurers are looking to grow in size to win better terms from medical providers and to maximize profits as business changes under the Affordable Care Act.
In its letter Sunday to Anthem’s board, Cigna executives said that “we are deeply disappointed with your recent actions.”
It then listed several concerns, such as “Anthem's lack of a growth strategy, complications relating to your membership in the Blue Cross Blue Shield Assn. and the related antitrust actions, and other significant challenges, such as the massive data breach you experienced in February.”
A spokeswoman for Anthem declined to comment Sunday on Cigna’s response.