Cigna Announces Purchase of HealthSpring
Managed care company Cigna said it would buy HealthSpring in a 3.8 billion dollar deal in an effort to bolster Cigna’s Medicare Advantage business.  Cigna is paying $55 a share, a 37% premium over the October 21, 2011 selling price of $40.16. 
Cigna is known for selling health insurance plans to businesses.  This purchase allows them to get into the business of selling medicare plans to elderly. 
“We view it as both a growth opportunity as well as a great marketplace to further differentiate," Cigna Chief Executive Officer David Cordani told reporters on a conference call.