XLV - Cigna Drops Humana Merger Opts For $10 Billion Buyback Strategy | Benzinga
In a recent development in the health insurance sector, Cigna Corporation (NYSE: CI) has withdrawn from its proposed merger with Humana Inc. (NYSE: HUM).
What Happened: The deal, poised to create a colossal entity in the industry with an estimated $140 billion, fell through due to disagreements over financial terms.
With the merger off the table, Cigna is redirecting its strategy towards smaller, targeted acquisitions, reports The Wall Street Journal.
These acquisitions, described as "bolt-on," signify a tactical pivot for the company. Initial discussions about Cigna acquiring Humana in a significant cash-and-stock transaction surfaced last month.
However, the proposal was met with skepticism from shareholders, leading to a notable decline in Cigna's stock value. Concerns centered on the proposed use ...