May 12, 2017 / 4:34 PM / 3 months ago

Anthem tells Cigna the deal is off, refuses to pay break-up fee

NEW YORK, May 12 (Reuters) - Anthem Inc said on Friday it notified Cigna Corp that the $54 billion merger deal was off after it lost a Delaware business court ruling on Thursday and also said it would not pay Cigna the $1.85 billion merger break-up fee.

Anthem and Cigna have been in legal disputes since the U.S. Justice Department won its case to block the merger of the two health insurers on antitrust grounds. Cigna was suing in Delaware to terminate the merger while Anthem pursued appeals of the antitrust decision.

"Cigna’s repeated willful breaches of the merger agreement and its successful sabotage of the transaction has caused Anthem to suffer massive damages," Anthem said in a statement. (Reporting by Caroline Humer; Editing by Bernard Orr)

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