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BRIEF-Cigna Corp terminates merger agreement with Anthem Inc
February 14, 2017 / 7:59 PM / 5 months ago

BRIEF-Cigna Corp terminates merger agreement with Anthem Inc

2 Min Read

Feb 14 (Reuters) - Cigna Corp :

* Says notified Anthem that it has terminated agreement and plan of merger by and among co, Anthem and a direct wholly owned subsidiary of Anthem

* Says expands share repurchase authority to $3.7 billion

* Says has filed suit against Anthem in Delaware court of Chancery seeking declaratory judgments - SEC filing

* Says notified Anthem that Anthem must pay $1.85 billion reverse termination fee pursuant to terms of merger agreement

* Cigna files suit seeking declaratory judgment, termination fee and additional damages exceeding $13 billion

* Says complaint also seeks payment by Anthem of $1.85 billion reverse termination fee, and additional damages in amount exceeding $13 billion

* Says Cigna reaffirms growth plan, expands share repurchase authority to $3.7 billion

* Says additional damages claimed include amount of premium that Cigna shareholders did not realize as a result of the failed merger process

* Says "2017 growth outlook for adjusted income from operations of 12%-18% will be further aided by the company's significant capital available for deployment"

* Says it is prudent to cap amount of share repurchase to $250 million per quarter until there is more clarity with respect to litigation with Anthem

* Says Anthem violated number of provisions in merger, including its obligation to use efforts to secure regulatory approval for the transaction Source text: bit.ly/2lMS1FM Further company coverage:

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