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Purveyor

(29,876 posts)
Tue Jul 19, 2016, 05:11 PM Jul 2016

U.S. Said Readying Suits Against Anthem, Aetna Insurer Deals

U.S. antitrust officials are poised to file lawsuits to block Anthem Inc.’s takeover of rival health-insurer Cigna Corp. and Aetna Inc.’s deal to buy Humana Inc., according to a person familiar with the matter.

Justice Department officials, who are responsible for protecting competition, are concerned that the deals, which would transform the health-insurance industry by turning its five biggest companies into three, would harm customers, according to several people familiar with the situation. While the companies may offer to sell assets to gain approval for the deals, that’s unlikely to sway antitrust officials, one of the people said.

The final decision on whether to sue to block the deals could come this week or next, another of the people said. The companies could settle a lawsuit before or after one is filed.

Shares of all four companies fell following the news. Humana dropped 3.9 percent to $153.38 at the close in New York and Cigna fell 2.1 percent to $130.30. Anthem lost 2.2 percent to $132.06, and Aetna slid 2.7 percent to $115.15.

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http://www.bloomberg.com/news/articles/2016-07-19/u-s-said-readying-suits-against-anthem-aetna-insurer-deals

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