Top Business Stories: Major Mergers, Restructuring, and Financial Updates

Strategic Insights -

Bermuda-based ACE Limited has agreed to buy Cigna's international and domestic property and casualty insurance businesses for $3.45 billion in cash, significantly strengthening its position in major insurance markets. This deal follows Aetna U.S. Healthcare's announcement to allow external review of coverage decisions, a first for national managed care organizations. Meanwhile, Lands' End is restructuring by cutting 94 positions and closing three outlet stores, while Bergen Brunswig has acquired PharMerica in a $1.4 billion deal. E*Trade Group and Sandy Robertson are investing in a new full-service investment bank, and International Paper reports a 60% decline in fourth-quarter net income.

Key Takeaways:

  • ACE Limited's acquisition of Cigna's insurance businesses is worth $3.45 billion in cash.
  • Aetna U.S. Healthcare will allow external review of coverage decisions, starting with commercial HMO, QPO, and USAccess plan members.
  • Lands' End will cut 94 positions and close three outlet stores as part of its restructuring.
  • Bergen Brunswig has acquired PharMerica in a stock and debt deal worth $1.4 billion, with assumed PharMerica debt of $580 million.
  • E*Trade Group and Sandy Robertson are investing in a new full-service investment bank, E*OFFERING, to provide online investors with greater access to public offerings.
  • International Paper's fourth-quarter net income before special items declined by 60% compared to the same period last year.

Statistics:

  • $3.45 billion: Value of ACE Limited's acquisition of Cigna's insurance businesses.
  • $1.4 billion: Value of Bergen Brunswig's acquisition of PharMerica.
  • $580 million: Assumed PharMerica debt as part of Bergen Brunswig's purchase.
  • 94: Number of positions being cut by Lands' End as part of its restructuring.
  • 3: Number of outlet stores being closed by Lands' End as part of its restructuring.
  • 60%: Decline in International Paper's fourth-quarter net income before special items.
  • $66 million: Net income before special items for International Paper in the fourth quarter.
  • $5.0 billion: International Paper's fourth-quarter net sales.
  • 21 cents: Per-share net income for International Paper in the fourth quarter.
  • 19 cents: Difference between International Paper's reported and expected per-share net income.

Sources:

  • ACE Limited press release
  • Aetna U.S. Healthcare announcement
  • Lands' End press release
  • Bergen Brunswig press release
  • E*Trade Group press release
  • International Paper quarterly earnings report
  • Market Statistics at 3:25 p.m. Eastern time.