Analyst Sees Anthem Inc Prevailing With Bid On CIGNA Corp

CIGNA Corporation

is likely to accept a bid of $190 a share from Anthem Inc

an analyst said Tuesday. Cigna, which rejected a $184 a share cash-and-stock bid from Anthem on Sunday, traded recently at $163.73, up $1.13. Leerink's Ana Gupta said the deal between the two insurance giants "will come to fruition" although Anthem may boost its latest bid by about 3 percent. Gupta also said Humana Inc

is unlikely to serve as a "second choice" for Anthem. Aetna Inc

made a recent offer for Humana, according to a report last week by The Wall Street Journal which the companies haven't confirmed. Aetna "looks like the only viable dance partner" for Humana, according to Gupta, who said Humana will fetch at least $210 a share. Humana traded recently at $189.90, down $0.04 cents. Cigna, in rejecting Anthem's bid Sunday, raised anti-trust and governance concerns, which Gupta said are "addressable." Cigna's Chief Executive David M. Cordani apparently doesn't want to get left out after a deal, and Gupta said a "co-chairman" role will probably be offered. If Anthem sweetens its offer for Cinga, it would be the fifth in a string of offers for Cigna that Anthem has made, starting with a bid of $174 a share on June 3, according to a letter disclosed Sunday. http://ir.antheminc.com/phoenix.zhtml?c=130104&p=irol-newsArticle&ID=2061142