Anthem's Claim Comes Due

The $50 billion-plus Anthem-Cigna merger that investors had already left for dead is now one big step closer to actual death after Wednesday night's court veto. That raises a question that perhaps should have been asked a while ago: what was Anthem thinking to begin with?

The $1.85 billion breakup fee Anthem Inc. is on the hook for gives it a monetary reason to appeal the federal ruling that its combination with Cigna Corp. would undermine competition and it's moving forward with that immediately. The chances of Anthem winning the appeal and actually completing the deal are low, though. It also faces tough odds should it attempt to weasel out of the breakup fee by accusing Cigna of violating the merger agreement. Either way, it has some explaining to do to investors.