Deals

Cigna, Humana Merger Deal ‘Math Now Works,’ Jefferies Says

  • Price for Humana of about $420 per share is plausible: Windley
  • Humana stock is down 32% since November talks, Cigna up 36%
Photographer: Joe Buglewicz/Bloomberg
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Cigna Group could resume its abandoned pursuit of Humana Inc. after the stock prices have moved to the point where a deal makes financial sense, according to Jefferies.

The two companies had reportedly been discussing a cash-and-stock deal in November, but talks fell through when the sides couldn’t agree on a price. But now, with Humana’s stock down about 32% since then and Cigna’s up 36%, an acquisition seems plausible, analyst David Windley wrote in a note to clients on Monday.