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Anthem Terminates Merger with Cigna. Cigna Responds.

Anthem has officially terminated its merger agreement with Cigna following a May 11 court ruling that gave Cigna the right to walk away from the deal.  A Delaware Court of Chancery denied Anthem’s request for a preliminary injunction to bar Cigna from leaving the $54 billion merger attempt.  Through extensions of the original merger agreement signed in July 2015, Anthem and Cigna had until April 30 to merge their companies.

Both sides have expressed  interest in pursuing legal action against the other for breach of contract damages related to the failed merger.  Anthem has even stated that it intends to not pay the originally agreed upon break-up fee of $1.85 billion because of Cigna’s failure to comply with contract obligations.

Read more from Anthem at Businesswire.

Read more from Cigna at Businesswire.

Read more at Healthcare Finance.

 

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