Billionaire activist investor Carl Icahn has taken a sizable stake in health insurer Cigna (CI) and plans to vote against the proposed merger of Cigna with Express Scripts (ESRX), thereby threatening to scupper the entire deal.
The latest reports from Wall Street Journal claims that Icahn, who holds close to 5% stake in Cigna, also plans to persuade other holders to vote against the deal, alleging that the deal is overvalued. Shareholders of both the companies are scheduled to vote on the proposed $67 billion deal simultaneously on August 24.
While both the companies have insisted that the merger would benefit customers, many critics argue that the deal could lead to a rise in drug prices.
They also claim that it will be challenging for the combined company to withstand competition from Amazon (AMZN), which has forayed into the healthcare segment by acquiring online pharmacy PillPack.
Earlier the news of Amazon entering into the competitive healthcare space had sent insurers, drug store chains and retailers into frenzy.
CVS Health’s (CVS) acquisition of Aetna (AET) had marked a new wave of vertical mergers in the healthcare space. In March, pharmacy benefits manager Express Scripts agreed to be acquired by Cigna in a deal that currently is being reviewed by Department of Justice. In April, the DOJ had asked for additional details on the deal.
Cigna witnessed a surge in its share price after the news broke out, whereas shares of Express Script traded in the negative territory on Wednesday.
Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared
Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million
With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard