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December 18, 2006

Update: St. Louis firm outbids CVS for Caremark

An unsolicited offer for Caremark RX Inc. could derail a takeover by the Woonsocket-based CVS Corp., the country’s second-largest drugstore chain.

Express Scripts Inc. bid $26 billion for the Tennessee-based Caremark, a deal that would create the biggest U.S. manager of drug benefits.

CVS shook up the health-care industry last month when it announced it would acquire Caremark, one of the nation’s largest pharmacy-benefit managers. The deal would push CVS revenues to $75 billion, annually.

CVS had agreed on Nov. 1 to buy Caremark for $48.53 a share.

Express Scripts bid $58.50 in cash and stock for each share, 15 percent more than the Friday closing price, St. Louis, Missouri-based Express Scripts said today in an e-mailed statement.

The CVS offer “almost invited shareholder frustration and opened the door for a superior bid,” said Stephen Pope, head of equity research at Cantor Fitzgerald in London.

Shortly after noon today, CVS stock was down 28 cents to $30.25. Check the latest stock price, with a 20-minute delay.

-- Bloomberg and Journal reports

Posted by Kate Bramson  at 12:30 PM | Permalink

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