Icahn warns Cigna investors on Express Scripts deal

By Associated Press

Carl Icahn is urging Cigna shareholders to vote against the health insurer’s attempted multi-billion dollar takeover of Express Scripts.

In a letter Tuesday, the billionaire and activist investor warned that Express Scripts, a pharmacy benefits manager, faces intense competition from Amazon, regulatory risks and said that it could lose the business of other health insurers that won’t want to deal with a company owned by a rival.

Icahn said Amazon will have no problem competing, given its 100 million members.

Icahn, who holds a stake in Cigna, suggested that the company instead consider multi-year partnerships with a pharmacy benefit manager, possibly even Express Scripts, while the sector deals with the challenges it’s facing.

He recommended Cigna buy back some of its stock, which would benefit Icahn and other shareholders.

This article provided by NewsEdge.