So What If Cigna's Buyout Falls Through? -- Market Talk
DOW JONES & COMPANY, INC. 6:58 AM ET 5/24/2016
Symbol Last Price Change
CI 126.96down +0.81 (+0.64%)
QUOTES AS OF 09:39:33 AM ET 05/24/2016
6:58 ET - Cigna(CI) briefly got to $170 in June as it and fellow health insurer Anthem (ANTM) were doing their pre- deal dance. Approaching a 1-year low yesterday and trading 27% below what share would fetch if a deal closed today, Susquehanna thinks CI is "near trough levels on a standalone basis." This as if a deal does fall through, the investment bank sees myriad opportunities for CI. There's the potential of buying a Medicaid-focused firm like Molina (MOH) or WellCare (WCG). There's buying Medicare Advantage operations a combined Aetna (AET) and Humana (HUM) might need to sell. And there's the potential of repurchasing 1/7 of shares outstanding "without taking on any additional leverage," adds Susquehanna. Down 3.9% yesterday, CI is inactive premarket. (kevin.kingsbury@wsj.com; @kevinkingsbury)
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05-24-160658ET
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