Judge threatens to delay or even spike $70m CVS-Aetna merger

A federal judge last week reportedly threatened to derail the already-closed $70 billion buyout of health insurer Aetna (NYSE:AET) by CVS Health (NYSE:CVS), saying he felt “kept in the dark, kind of like a mushroom.” At a normally routine hearing last week prior to approving the deal, Judge Richard Leon, of the U.S. District Court for the District of Columbia, said he might put off a decision until the summer or even spike the deal altogether, Reuters reported. “I was reviewing your motion, which, of course is not opposed. And I kind of got this uneasy feeling that I was being kept in the dark, kind of like a mushroom,” Leon said, noting that the American Medical Association, among others, had objected to the deal. “I’m very concerned, very concerned that you all are proceeding on a rubber-stamp approach to this.” The companies closed the buyout, announced in December 2017, on Nov. 28. It calls for Aetna stockholders to receive $145 in cash and 0.8378 CVS shares for each AET share, for a total value of $212 per share or roughly $70 billion. Woonsocket, R.I.-based CVS is financing the deal with cash on hand and debt, including a $40 billion senior notes offering and a two-tranche term loan of $5 billion. But in order to seal the deal, Aetna had to agree to deal its 2.2-million-member Medicare Part D drug plan to WellCare Health Plans (NYSE:WCG). That deal is slated to close within the next few business days, pending LeonR...
Source: Mass Device - Category: Medical Devices Authors: Tags: Featured Mergers & Acquisitions Wall Street Beat Aetna CVS Health Source Type: news