NEW YORK (TheStreet) -- Cigna (CI) - Get Report and Anthem (ANTM) are likely to scrap their $54 billion merger deal due to the uphill battle the company's face after a federal lawsuit was filed against them by the Department of Justice, Bloomberg TV's Vonnie Quinn reported on "Bloomberg Markets" Friday, citing a Barclays report.
The DOJ filed a federal lawsuit against the Cigna-Anthem deal and Aetna's (AET) plan to buy Humana (HUM), saying the mergers will negatively affect competition.
Cigna could see as much as $1.2 billion in termination fees, the firm said in a note.
Cigna announced on Thursday that it is currently evaluating its options coherent with the obligations listed in its contract with Anthem.
Shares of Cigna are up by 3.28% to $144.93 this afternoon.
Separately, TheStreet Ratings team rated this stock as a "buy" with a ratings score of B. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and notable return on equity. TheStreet Ratings team feels its strengths outweigh the fact that the company has had sub par growth in net income.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: CI