Why Cigna Group Stock Got Mashed on Monday
Cigna Group (NYSE: CI) stock reacted to news that the large health insurer is reigniting its pursuit of a rival. Unfortunately for the company's shareholders, that reaction was largely negative, and the shares closed the trading day nearly 5% lower in price. That fall was far steeper than the 0.2% slide of the bellwether S 500 index.
In an article published after market close last Friday, Bloomberg wrote that Cigna is in talks with fellow health insurance major Humana (NYSE: HUM) regarding a merger of the two companies. This might sound familiar to insurance industry watchers, as the pair engaged in a series of discussions late last year that ultimately proved fruitless. Cigna was the party walking away after the two sides failed to agree on a price, according to Bloomberg reporting at the time.
Citing unnamed "people familiar with the matter," the news agency said that Cigna and Humana's current discussions are at an early, informal stage. No decision on the matter has yet been made, and it's possible the two companies could wait until 2025 to reach a deal. They might also opt not to merge at all.
Source Fool.com
Cigna Corp. Stock
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