US: Carl Icahn to block US$54b Cigna-Express Scripts merger

Billionaire hedge fund manager Carl Icahn has amassed a sizable stake in health insurance industry giant Cigna and plans to vote against its proposed US$54 billion acquisition of Express Scripts Holding when shareholders vote August 24, as first reported by The Wall Street Journal.

Icahn, a high-profile activist investor who once served as an advisor to President Trump, holds less than a 5% stake in the insurance company. He reportedly believes that Cigna is paying too high of a price for the pharmacy benefit manager (PBM), which faces various risks including consolidation of industry rivals and the entrance of e-commerce and cloud computing titan Amazon.

In December, insurance rival Aetna agreed to buy drugstore chain and PBM manager CVS Health in a deal worth US$69 billion. On Wednesday, August 1, California Insurance Commissioner Dave Jones released a report urging the US Justice Department to block the proposed tie up.

Full Content: The Wall Street Journal

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