WSJ: Anthem, Cigna Merger Squabbles Could Delay Or Derail Antitrust Approvals

(RTTNews) - Quarrels have broken out behind the scenes of Anthem Inc.'s (ANTM) $48 billion proposed acquisition of Cigna Corp.(CI)as the health insurers seek regulatory approval for their landmark deal, the Wall Street Journal reported.

The report noted that the squabbles could delay or derail antitrust approvals, which are typically harder to obtain if both parties aren't in sync. While neither company has sought to terminate the merger, the people say, and it doesn't appear in danger of imminent collapse, Anthem and Cigna are bickering on several fronts.

In the correspondence, between top officials including their chief executives, Anthem and Cigna accuse each other of violating the July merger agreement and fumbling submissions to regulators.

The report noted that a key point of contention is Anthem's lawsuit against Express Scripts Holding Co., a major middleman for prescription drugs. The March complaint accuses Express Scripts of overcharging Anthem for drugs and seeks about $15 billion in damages.

Cigna Chairman Isaiah Harris Jr., in an April 9 letter to Anthem's board, said the suit could hurt the prospects for regulatory approval and the combined company's value. Anthem responded to Cigna's board that it had alerted Cigna to the possibility of a lawsuit early in their merger talks, and that squeezing better prices from Express Scripts can only be beneficial.