No Deal

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According to Reuters, U.S. health insurer, Cigna (CI.N) has ended its attempt to negotiate an acquisition of rival Humana (HUM.N) after the pair failed to agree on price.

Questions:

  1. How large would the company be based on combined market value if the merger had succeeded?

2. Cigna is still exploring the sale of its Medicare Advantage business. What does this segment focus on?

3. Cigna is planning to do a total of how much total repurchases of stock? Exactly what does this mean?

Source: Sen, A. (2023). Cigna abandons pursuit of Humana, plans $10 billion share buyback. Reuters, Dec. 10 (Retrievable online at https://www.reuters.com/markets/deals/us-health-insurer-cigna-scraps-deal-buy-humana-wsj-2023-12-10)