As pharmacy benefits manager Express Scripts renewed its push for a hostile takeover of Nashville-based Caremark R-X this week, CVS sweetened its offer with an added 2-dollar payout to stockholders for each of the company’s shares.
Even with the CVS bonus, it sien’t doesn’t top Express Scripts’ offer of nearly 25-billion dollars. Health care analyst John Ransom says CVS is a much safer bet, but he adds that the initial CVS bid left room for the pharmacy chain to pay more.
“The fact that Express has gotten into the mix is healthy because I think CVS may have been getting too good of a deal.”
Ransom says Express Scripts likely will make another offer before a deal goes to Caremark shareholders.
If Caremark does finalize a merger with CVS, it will likely be the first Wall Street joint venture of a pharmacy chain and a benefits manager.
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