Cigna, Humana Merger Deal ‘Math Now Works,’ Jefferies Says (1)

Cigna Group could resume its abandoned pursuit of Humana Inc. after the stock prices have moved to the point where a deal makes financial sense, according to Jefferies.

The two companies had reportedly been discussing a cash-and-stock deal in November, but talks fell through when the sides couldn’t agree on a price. But now, with Humana’s stock down about 32% since then and Cigna’s up 36%, an acquisition seems plausible, analyst David Windley wrote in a note to clients on Monday.

“The math now works for a CI+HUM fusion,” Windley wrote, adding that a deal for about $420 per ...