UFCW 324 Communications / News
CVS Shareholders OK Caremark Acquisition
~ Buyout, valued at $23.9 billion, still needs approval of Caremark's shareholders
March 15 2007 · Reuters
Shareholders of CVS, the No. 2 U.S. drugstore chain, on Thursday approved the company's $23.9 billion plan to buy pharmacy benefits manager Caremark.
Separately, Express Scripts said it is committed to raising the money for another offer.
The deal still needs the approval of Caremark shareholders, who will vote on March 16.
CVS said more than 90 percent of the votes cast at a special shareholder meeting in Woonsocket, R.I., were voted in favor of the deal.
Caremark agreed to be acquired by CVS in an all-stock deal in November. Express Scripts a Caremark rival, entered the fray in December with an unsolicited cash and stock offer for Caremark now worth $27.8 billion.
CVS has not raised its original stock offer, which calls for Caremark shareholders to receive 1.67 CVS shares for each Caremark share. But CVS did sweeten its bid with a special dividend of $7.50 per share, which will be paid to Caremark shareholders once the deal closes.
Express Scripts also sweetened its own bid earlier this month by offering to pay interest on the cash portion of its offer.
Shares of CVS jumped 1.5 percent after the shareholder vote result.
Shares of Caremark rose 1.4 percent in mid-afternoon trade.
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Caremark Shareholders OK CVS Takeover
~ Vote effectively ends rival bid from benefits manager shareholder Express Scripts
March 16 2007 · Reuters
Caremark Rx Inc. shareholders Friday approved a $24.3 billion takeover offer from drug-store chain CVS Corp., effectively ending a months-long takeover fight with Express Scripts Inc. for the rival pharmacy benefits manager.
CVS had not raised its original stock offer, which calls for Caremark shareholders to receive 1.67 CVS shares for each Caremark share. But CVS did sweeten its bid with a special dividend of $7.50 per share, which will be paid to Caremark shareholders once the deal closes.
Caremark agreed to be acquired by CVS in an all-stock deal in November. Express Scripts joined the fray in December with an unsolicited cash and stock offer for Caremark now worth about $28 billion.