Here’s Why These Five Stocks Are Trending on Tuesday

Mega-Insurer Merger Looks Less Likely

CIGNA Corporation (NYSE:CI) and Anthem Inc (NYSE:ANTM)‘s proposed merger is on the rocks according to the New York Post. According to the article, many analysts on the Street believe the Department of Justice will try to block the merger between the two and it is unclear whether Anthem has the will to fight the potential decision. If Anthem fights, the insurer would potentially lose out on the chance to buy some of Aetna’s assets that could be accretive to the bottom-line. Any merger breakup would be expensive, however. The merger deal includes a $1.85 billion termination fee that the two companies insist is not under renegotiations currently. A total of 61 funds tracked by us had a bullish position in CIGNA Corporation (NYSE:CI) and 56 funds were long Anthem Inc (NYSE:ANTM) at the end of the first quarter. Anthem’s shares are up by 1.2%, while Cigna shares have gained over 2% so far today.

Disclosure: none