NEW YORK (TheStreet) -- Shares of Cigna Corp (CI) were soaring, up 8.53% to $168.50 in pre-market trading Monday, after the company turned down a $47.5 billion takeover bid from rival health insurance company Anthem Inc (ANTM).
TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio says, "Consolidation is great for this industry if the government allows it. There is a presumption that it will."
"I do not know where that confidence comes from," Cramer added.
Cigna said the bid is not in the best interest of shareholders, and added antitrust concerns for turning down the offer.
On Saturday, Anthem offered $184 per share in cash and stock for Cigna.
Anthem made its offer public to encourage Cigna shareholders to push the company, according to The Wall Street Journal.
Bloomfield, Conn.-based Cigna is a health services company that offers medical, dental, disability, life and accident insurance and related products and services.
Separately, TheStreet Ratings team rates CIGNA CORP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CIGNA CORP (CI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. 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, notable return on equity, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins."