Carl Icahn is on quite the winning streak since taking his leave of the Trump administration (which is a win in-and-of itself). He browbeat a small natural-gas driller into abandoning what he considered an unconscionable acquisition, and then took the company over anyway. He demanded the head of Xerox’s CEO, and got it—along with those of a few other board members, and Xerox’s deal with Fuji, to boot. He threw a fit over AmTrust Financial’s plan to go private, and squeezed another $100 million out of its controlling families. Even his melancholy moments—admitting that there’s no sport in owning Herbalife if Bill Ackman’s not on the other side of the trade—have been profit-taking ones.
This is not good for Cigna, which Carl Icahn now owns a substantial chunk of, or its $54 billion deal for Express Scripts Holding, which Carl Icahn is not a fan of.
Mr. Icahn, whose stake amounts to less than 5% of Cigna’s shares outstanding, believes the company is paying too high a price for the pharmacy-benefit manager, which faces threats on a number of fronts, according to people familiar with the matter.
Cigna in March agreed to pay what amounted to about $96.03 a share in cash and stock for Express Scripts…. It closed at $74.44, down 6.3%....
Behind Mr. Icahn’s opposition, the people said, is fear the combined company would have to contend with Amazon.com Inc.’s growing presence in the health-care industry and a proposal to limit the manufacturer rebates pharmacy-benefit managers receive.