Cigna reportedly ends negotiations to acquire Humana, plans major stock buyback

Cigna on Sunday reportedly ended its efforts to negotiate an acquisition of rival Humana, per a Reuters report, which noted that the two companies failed to agree on price. Additionally, the report said the company announced plans to buy back $10 billion worth of shares.

A Cigna-Humana combination would have created a company with a value exceeding $140 billion, based on their market values, but was certain to come under fierce antitrust scrutiny. The discussions came six years after regulators blocked mega-deals that would have consolidated the U.S. health insurance sector, the report noted.

The acquisition talks ended due to the parties not being able to agree on price, two sources familiar with the situation said. There remains the possibility of a combination in the future, those sources said.

On Sunday Cigna plans to do an additional $10 billion in share repurchases, bringing total repurchases to $11.3 billion.

[Read more: Cigna reportedly in talks to merge with Humana]

"We believe Cigna's shares are significantly undervalued and repurchases represent a value-enhancing deployment of capital as we work to support high-quality care, improved affordability, and better health outcomes," David Cordani, chairman and CEO of Cigna said, in a statement.

Cordani said the company would consider bolt-on acquisitions aligned with its strategy as well as "value-enhancing divestitures," the report said, noting that according to sources Cigna is still exploring the sale of its Medicare Advantage business, which manages government health insurance for people aged 65 and older.

Humana declined to comment, while Cigna did not respond to a Reuters request for comment on the deal talks, which were earlier reported by the Wall Street Journal.