DOJ Lawyer's Openness to Settlement in Anthem (ANTM)/Cigna (CI) Case Seen as 'Surprise', Says Analyst
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Analyst Ana Gupte of Leerink commented reports related to Anthem (NYSE: ANTM) and Cigna's (NYSE: CI) merger. Earlier a DOJ lawyer said the. U.S. is open to settlement offers, sending shares higher. The news is seen as a "surprise."
"Bloomberg News reports that the DOJ lawyer appointed in the ANTM CI legal defense against the DOJ lawsuit blocking the merger is open to settlement in the case. The Federal Judge Allison Berman Jackson says that the trial will start in mid to late November which is earlier than the deal set for the AET HUM trial of Dec 5; however the ruling is not likely by year end. ANTM has the option to extend the merger agreement through April 2017," noted the analyst.
Gupte added, "This is clearly a surprise with our and likely the Street probability of a successful trial or settlement at 25% or below at this point. It meaningfully increases the optionality for upside for CI and ANTM."
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