Cigna rebuffs takeover approach by Anthem

(AP) Shown is a sign outside the headquarters of the health insurer Cigna Corp. in Philadelphia.

(Reuters) — Health insurer Cigna Corp. has rebuffed a takeover offer from larger rival Anthem Inc. that valued the company at about $45 billion, the Wall Street Journal reported.

The companies have been in discussions for months, with Anthem making two takeover bids within the last 10 days, the Journal reported, citing people familiar with the matter.

Anthem's last bid was worth about $175 per Cigna share, the WSJ said.

Cigna shares jumped 18% to a record high of $162.16 on Monday, while Anthem's stock was up 2% at $163.98 on the New York Stock Exchange.

At $175 per share, Cigna would be valued at $45.03 billion, compared with a market capitalization of $35.34 billion as of Friday's close.

An Anthem spokeswoman said the company did not comment on rumors or speculation. Cigna declined to comment.

Cigna manages insurance plans for large companies and sells health plans on government exchanges created under the Affordable Care Act health insurance reform law. It also offers dental and other benefits.

Anthem is one of the biggest players on the individual exchanges created under the law and also runs a huge employer-based insurance business.

The report comes within a month of the Journal reporting that Humana Inc. was exploring a sale, with Aetna Inc. and Cigna among those that had held preliminary merger discussions with Humana.