The workplace structure of health insurance provider Anthem is seen in Los Angeles, California February 5, 2015.
Reuters/Gus Ruelas/File Image
<articleLocation” > U.S. antitrust regulators are concerned about health insurer Anthem Inc’s (ANTM.N) proposed acquisition of Cigna Corp (CI.N) and not sure the companies can provide enough concessions to preserve competition in the industry, the Wall Street Journal reported on Sunday. Both business have actually set up meetings this week with leading U.S. Department of Justice authorities, the Journal reported, pointing out individuals knowledgeable about the matter. Some of the sources said the DOJ had actually not yet made a decision on whether to sue to block the deal.
Wall Street does not appear persuaded the offer will go through, as confirmed in the broad spread in between Anthem’s deal and Cigna’s share rate. Since the marketplace close on Friday, Cigna shares traded at a 32.5 percent discount to the offer, which has an equity value of about $44 billion.
Anthem revealed plans to buy Cigna last summer season. Also pending is Aetna Inc’s (AET.N) acquisition of Humana Inc (HUM.N) which faces significant antitrust issue as well. That deal is valued at about $34 billion.
( Reporting by Rodgrigo Campos in New York; Modifying by Peter Cooney).