Does Anthem Want Cigna For $175/Share? Some Shareholders Are Buying Into The Rumor

According to Dow Jones, Anthem Inc ANTM has initiated a takeover bid for CIGNA Corporation CI at $175 per share. That's a premium of about 17 percent -- Cigna shares are up a little over 13 percent on the report.

Cigna's insurance subsidiaries provide major medical, dental, disability, life, and accident protection to clients throughout the United States and select international markets. Most of the services themselves are provided by other groups. The company also offers Medicare and Medicaid products and services.

Related Link: Cigna CEO: Low Interest Rate Mutes Investment Gains

Anthem, meanwhile, is the largest for-profit managed healthcare company in the Blue Cross and Blue Shield Association. One in nine Americans receive medical coverage from Anthem-affiliated plans.

Merger rumors have been abound in the healthcare industry of late.

Humana Inc HUM, another insurance provider, has been at the center of speculation, with Cigna and Aetna Inc AET serving as potential suitors according to the Wall Street Journal.