Carl Icahn voices opposition to $54 billion Cigna-Express Scripts deal

Carl Icahn went public Tuesday morning with his campaign against Cigna's $54 billion plan to buy Express Scripts.

The billionaire activist investor sent an open letter urging fellow Cigna shareholders to vote against the deal.

Icahn calls the deal a "$60 billion folly" carrying a "ridiculous" price tag, according to a draft seen by The Wall Street Journal.

"Cigna is dramatically overpaying for a highly challenged Express Scripts that is facing existential risks on several fronts," according to Icahn in the letter.

Icahn’s concerns include competitive risk from Amazon.com and indications from the Trump administration that it could limit the manufacturer rebates pharmacy-benefit managers get.

Icahn and his affiliates reportedly own about 0.56% of Cigna, a stake worth more than $250 million as of Monday's market close, according to people familiar with the matter.

Some people say, it may be a long shot due to the  limited time he has to rally other shareholders.

Cigna in March agreed to pay what amounted to about $96.03 a share in cash and stock for Express Scripts and said last week that it was confident of winning shareholder approval.

Icahn would rather see Cigna instead strike a multiyear partnership with a pharmacy-benefit manager like Express Scripts.

A vote is set for Cigna and Express Scripts shareholders August 24.

This story has been updated.