Chicago Tribune / Associated Press, October 24, 2011

Managed-care company Cigna Corp. said Monday it will buy fellow health insurer HealthSpring Inc. in a $3.8 billion deal that would boost Cigna's Medicare Advantage business. The Bloomfield, Conn., company will pay $55 per share in cash for HealthSpring, which is based in Nashville, Tenn. That represents a 37 percent premium over the stock's Friday closing price of $40.16. HealthSpring shares soared 33 percent, or $13.34, to $53.50 in premarket trading, while Cigna stock was up more than 3 percent, or $1.55, to $46.25. Cigna said the boards of directors for both companies have approved the deal, and it is expected to close in the first half of 2012.

Facebook icon
LinkedIn icon
Twitter icon