Enter multiple symbols separated by commas

Express Scripts Plans Proxy Fight For Caremark: CNBC's Faber

Express Scripts confirmed its plans to launch a proxy battle for four seats on Caremark's board, as reported by CNBC's David Faber.

The move comes after Caremark, a pharmacy benefits manager, rejected a roughly $26 billion takeover bid from Express Scripts in favor of a $22.2 bllion offer from drugstore chain CVS.

"Express Scripts will make it very, very clear it is serious," Faber said, on CNBC's "Street Signs."

Caremark has said Express Scripts' proposal included "questionable assumptions" on the calculation of synergies and faced significant antitrust risks and timing delays.

In a statement, Caremark said the Express Scripts stock and cash proposal "does not constitute, and is not reasonably likely to lead to, a superior proposal".

Caremark said the proposed all-stock deal with CVS presents limited integration risk and significant opportunities for synergies between the two companies.

A merger with CVS is expected to create more than $500 million in cost synergies through the combination of the firms' pharmacy benefits management businesses, Caremark said.

Caremark said its deal with CVS had already received antitrust clearance and the companies expected to close the transaction by the end of the first quarter of 2007.

"We are fully committed to our pending merger with CVS and believe strongly in the financial and strategic merits of the proposed combination," said Mac Crawford, chairman, president and CEO of Caremark.

Express Scripts' proposal lacks strategic rationale and creates the risk of significant customer attrition and destruction of shareholder value, Caremark said. Express Scripts' plan would also result in a "highly leveraged and weakened business" with diminished financial strength, it added.

"Our board gave careful consideration to Express Scripts' proposal," said Crawford. "In the end, our conclusion was simple and straightforward: Express Scripts' proposal is not in the best interests of Caremark, its shareholders, customers and consumers."

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Lottery ticket

    A thief who broke into the car of a Seattle couple left behind a million-dollar lottery ticket, NBC News reports.

  • The Lamborghini SpA Urus SUV.

    There's no shortage of luxury vehicle choices, but increasingly the wealthy are opting for high-end SUVs instead of traditional models.

  • Mike Trout #27 of the Los Angeles Angels takes a picture with fans before a game with Boston Red Sox at Fenway Park on May 23, 2015 in Boston, Massachusetts.

    MLB is using digital media initiatives like Snapchat and Web video to connect with younger viewers. Is it enough?

U.S. Video

  • Cramer: Here's the no. 1 play in cybersecurity

    Guarding Your Portfolio? "Mad Money" host Jim Cramer's got the number one pick for protection services in today's digital world.

  • Underestimate Cisco at own peril: Cramer

    Mad Money's Jim Cramer takes a look at the cybersecurity space to see if it could also protect your money.

  • Fly with LUV?

    While remaining profitable, Gary Kelly, Southwest Airlines chairman and CEO, tells Mad Money's Jim Cramer the company continues to focus on being a great airline and offering great customer service.