Anthem Reportedly Bids For Cigna, Humana

(RTTNews) - Health insurer Anthem Inc (ANTM), is exploring a takeover bid for smaller rival Cigna Corp (CI), Bloomberg reported on Monday, quoting people familiar with the matter.

Anthem has been engaged in takeover discussions with Cigna, even as it weighs a bid for Humana Inc (HUM).

The report comes at a time the health-insurance industry is on a consolidation drive as companies seek to cut costs and tap opportunities stemming from the Affordable Care Act.

Meanwhile, the Wall Street Journal reported that Cigna has rebuffed Anthem's offer for about $175 a share.

According to the Journal, the companies have been in talks for some months, and in the past 10 days, Anthem has made two takeover bids.

There may yet be another combination, with Bloomberg reporting Humana's interest in Aetna Inc (AET).

Anthem shares closed Monday at $164.46, up $3.75 or 2.33%, on the NYSE.

Cigna ended the day's session at $153.43, up $16.12 or 11.74%, on the NYSE.

Humana closed at $206.58, down $5.89 or 2.77%, on the NYSE.