Activist Investor Takes Stake in CVS
November 25 2019 - 4:26PM
Dow Jones News
By Corrie Driebusch
Activist investor Starboard Value LP has taken a stake in CVS
Health Corp. and held talks with the drugstore-and-insurance
giant's management, according to people familiar with the
matter.
The stake appears to be relatively small and the people said the
talks, held recently, are amicable. How much Starboard currently
owns and what it has discussed with the company couldn't be
learned. But Starboard is one of the top activist-investment firms
and its presence in a stock usually causes a company to sit up and
take notice.
CVS shares have been on a roller-coaster ride since the company
acquired health insurer Aetna Inc. for nearly $70 billion almost a
year ago. The deal married CVS's sprawling drugstore network and
pharmacy-benefit manager with one of the nation's largest health
insurers.
The stock fell sharply after the Woonsocket, R.I., company in
February issued a downbeat earnings projection for the year due to
challenges in its pharmacy-benefits and long-term-care businesses.
The shares went on to rebound sharply as the company reported a
string of unexpectedly strong financial results, and research
analysts have taken a more favorable view.
--Sharon Terlep contributed to this article.
Write to Corrie Driebusch at corrie.driebusch@wsj.com
(END) Dow Jones Newswires
November 25, 2019 16:11 ET (21:11 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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