Anthem extends termination date of deal with Cigna to April 30
Anthem had until Jan. 31 to give Cigna notice it was exercising right of contract to move deadline to outside date of April 30.
Anthem has elected to officially extend its contract deadline to merge with Cigna to the end of April, according to a Securities and Exchange Commission filing on Thursday.
Anthem spokeswoman Jill Becher said the insurer was not commenting on the filing and did not comment to a question of whether a court decision had been reached in the case or was soon expected.
Sources have reportedly told the New York Post that the filing was done ahead of an expected court ruling against the $54 billion deal, as soon as today, raising speculation that Anthem wants to leave open the option to appeal a court decision against the merger.
No one from the Department of Justice or Cigna could be reached for comment.
The termination date is not new. In the contract agreement of July 2015, either Anthem or Cigna had the right to extend the deadline to the outside date of April 30, 2017, and had until January 31 to file for that extension.
On Thursday, Anthem delivered written notice to Cigna that it had elected to extend the end date of their merger agreement through April 30, according to the Jan. 19 Securities and Exchange Commission filing.
"Anthem's election to extend the termination date is based on its determination that additional time will be needed to consummate the merger contemplated by the merger agreement, regardless of the outcome of the district court's proceedings …" Anthem said in the filing.
If the merger fails to go through for reasons specified in the contract, Anthem would pay Cigna a $1.8 billion breakup fee.
[Also: Unsealed merger trial documents show rift between Anthem, Cigna]
Industry experts have said Anthem and Cigna would have an uphill battle against the DOJ's arguments of antitrust concerns should the insurers be allowed to combine.
The Justice Department filed an injunction against the deal in July. Trial began in November, taking place in two phases. Closing arguments were heard January 4.
[Also: Second phase of Anthem-Cigna merger trial ends]
During trial, evidence of bickering between Anthem and Cigna emerged. Each accused the other of breaking the terms of the merger agreement, with the role of Cigna CEO David Cordani uncertain in the combined company.
The DOJ also filed an injunction in July against the $37 proposed merger of Aetna and Humana. The case went to trial in December.
Twitter: @SusanJMorse