CI - Why Cigna Stock Soared Today
2023-12-11 16:45:07 ET
Shares of Cigna Group (NYSE: CI) were up 16.6% as of 1:30 p.m. ET Monday after the health insurance giant reportedly called off its potential acquisition Humana and announced a $10 billion buyback instead.
The Wall Street Journal reported late last month that Cigna and Humana were in merger talks that would have resulted in a $140 billion health insurance industry juggernaut. But investors balked at the prospect of the combination -- particularly with the potentially dilutive cash-and-stock nature of such a deal -- and shares of Cigna had plunged more than 10% as of Friday's close since news of the talks broke.
According to people familiar with the situation over the weekend, however, Cigna and Humana simply couldn't agree on specific financial terms. As such, they've abandoned the merger talks altogether.
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Why Cigna Stock Soared Today