CI Cigna Group

By Anne Steele 

Anthem Inc. on Friday terminated its long-troubled merger agreement with Cigna Corp., adding that it wouldn't pay a termination fee and promised to "vigorously pursue" damages claims against the insurer.

The statements come a day after a Delaware judge said Cigna could abandon its proposed $48 billion merger with Anthem, declining to give Anthem more time to salvage a deal federal courts had already blocked on antitrust grounds.

Anthem said it delivered a notice terminating the agreement "in light of yesterday's decision and Cigna's refusal to support the merger."

The health insurer said Cigna isn't entitled to a termination fee because it "failed to perform and comply in all material respects with its contractual obligations."

"Cigna's repeated willful breaches of the merger agreement and its successful sabotage of the transaction has caused Anthem to suffer massive damages, claims which Anthem intends to vigorously pursue against Cigna," according to a statement.

Cigna didn't immediately respond to requests for comment.

Both companies have accused one another of violating the merger agreement.

While Cigna prevailed Thursday in being able to walk away from the deal, the judge said Anthem may have a strong case that Cigna didn't live up to its commitment to try to preserve the tie-up. The judge said Anthem at some point may have a chance to collect a large monetary damages award against Cigna.

Write to Anne Steele at Anne.Steele@wsj.com

(END) Dow Jones Newswires

May 12, 2017 13:04 ET (17:04 GMT)

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