Shares of CVS were down 4.2 percent at 2:55 p.m., as investors expressed uncertainty about the deal. Meanwhile, Aetna shares were down 1 percent, according to Bloomberg.
“Investors today are making a mistake by undervaluing CVS, much the way they undervalued Aetna in 2013,” Larry Robbins, whose hedge fund, Glenview Capital Management, is a major holder of Aetna, told Bloomberg.
Not including potential tax reform gains, Mr. Robbins said the combined companies could be worth up to $120 per share within two years if the merger goes through.
More articles on healthcare finance:
North Philadelphia Health System CEO to resign as part of cost-cutting plan
Insider selling: Interim CEO unloads $35M in Cerner stock
Trinity Health’s operating income nearly doubles in most recent quarter
