The buyback will increase Cigna’s complete share repurchase authority to $11.3 billion, the Bloomfield, Connecticut-based firm stated Sunday. Cigna can be abandoning discussions with Humana, in accordance to an individual with information of the matter who requested not to be recognized.
The Wall Street Journal reported earlier Sunday that Cigna is strolling away from the merger talks. Humana didn’t instantly reply to requests for remark.
Cigna expects to repurchase at the least $5 billion of frequent inventory by the tip of the primary half of 2024, in accordance to its assertion. A portion of the repurchase will happen via an accelerated program performed within the first quarter.
“We believe Cigna’s shares are significantly undervalued and repurchases represent a value-enhancing deployment of capital as we work to support high-quality care, improved affordability, and better health outcomes,” stated David Cordani, Cigna’s chairman and chief government officer. “As we take a look at the broader panorama and the strategic alternatives earlier than us, we are going to stay financially disciplined with a transparent deal with executing in opposition to our technique, delivering worth for our shareholders, and investing in our future.
While Cigna didn’t remark publicly on Humana, Cordani stated within the assertion that the corporate will “consider bolt-on acquisitions aligned with our strategy, as well as value-enhancing divestitures.”
— With help from John Tozzi