Summary
Despite the previous opposition from Carl Icahn, Cigna shareholders are expected to approve the company’s $67 billion acquisition of Express Scripts on August 24.
The opposing parties both have some valid points about the deal, but Carl Icahn was too late to gather support against the acquisition.
I have decided not to open any position in Cigna or Express Scripts and rather wait for the acquisition to be completed before making any moves.
On August 24, Cigna (NYSE: CI) shareholders will vote on the company’s decision to acquire Express Scripts (NASDAQ: ESRX) for $67 billion. After a week of opposition from Carl Icahn, it seems that the deal will be approved, as advisory firms like ISS and Glass Lewis both said that they will support the approval of the deal and Icahn himself in a letter stated that he will no longer oppose the possible transaction and is not going to be engaged in a proxy contest. After studying the arguments for the acquisition of Express Scripts and against, I have decided to share my view on this matter and find out what shareholder of Cigna should expect from the deal in the future.
