Anthem Reiterates Commitment To $184/shr Proposal For Cigna - Quick Facts

(RTTNews) - Anthem Inc. (ANTM) reiterated its commitment to its non-binding June 20, 2015 proposal to acquire Cigna Corp. (CI) for $184 per share in cash and stock.

Anthem noted that it firmly believes that this combination will generate approaching $2 billion in synergies within two years post close and at least $17 adjusted earnings per share by 2018.

Anthem said it continues to expect net income for full year 2015 to be greater than $9.47 per share, including greater than $0.43 per share of net unfavorable items. Excluding these items, adjusted net income is still expected to be greater than $9.90 per share. This guidance includes no additional net adjustment items beyond those reported in first quarter 2015 earnings release. Analysts polled by Thomson Reuters expect the company to report earnings of $10.07 per share for fiscal 2015. Analysts' estimates typically exclude special items.

Anthem will hold a conference call and webcast at 11:00 a.m. Eastern Daylight Time ("EDT") on Monday, June 22, 2015, to review the proposal to acquire Cigna.

On Sunday, Health insurer Cigna Corp rejected bigger rival Anthem's $54 billion takeover offer, stating that the proposal was inadequate and not in the best interests of its shareholders. Cigna said it was concerned over Anthem's lack of growth strategy, fundamental risks and other issues facing the company.

Cigna also said differences over the leadership of the combined company is disconcerting and risky. A main stumbling block has been over the future role that Cigna's Chief Executive Officer David Cordani will have in the combined company. Anthem insisted that its CEO Joseph Swedish would lead the combined company for two years, and Cordani would be president and chief operating officer. After that, Cordani would be a candidate for CEO position, but that is not guaranteed.