CVS stock slides on report judge will squash Aetna deal

CVS Health saw its shares fall after a New York Post report said people close to the companies think a federal judge will rule against its $69 billion takeover of Aetna, according to Barron's.

Federal Judge Richard Leon heard testimonies from CVS-Aetna executives as well as Justice Department officials and physician leaders from the American Medical Association on antitrust concerns involving the merger. Mr. Leon is tasked with signing off on the Justice Department's settlement with the companies, but has stalled the usually swift process over concerns about the combination.

In the New York Post report, an unnamed source who said they have close ties with CVS and Aetna said the judge would block the deal. However, CVS and Aetna disregarded the report.

"CVS Health and Aetna have been one company since the deal closed in November 2018, and the combined entity is already showing progress toward its goal of transforming the consumer health experience," a company spokesperson told Barron's. "We won't be distracted by unfounded rumors and speculation."

CVS stock fell 1.6 percent in afternoon trading June 11 to $54.17 per share.

More articles on payers:
Anthem to cover some WellStar services, state order says
Q&A: Allina Health | Aetna CEO on the joint venture's first year
UPMC backpedals on controversial prepayment policy

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months