Caremark said that the proposal from Express Scripts risks losing customers and includes questionable assumptions with regard to synergies. The company also asserted that the offer is a ploy to derail the merger between CVS and Caremark.
However, Caremark said that the $21 billion CVS proposal would create in excess of $500 million in synergies related to the combination of Caremark’s and CVS’s pharmacy benefits management businesses. Caremark and CVS have already received antitrust clearance and expect to close the transaction by the end of the first quarter of 2007.
“We are fully committed to our pending merger with CVS and believe strongly in the financial and strategic merits of the proposed combination,” said Mac Crawford, chairman, president and CEO of Caremark.
“Our board gave careful consideration to Express Scripts’ proposal. In the end, our conclusion was simple and straightforward: Express Scripts’ proposal is not in the best interests of Caremark, its shareholders, customers and consumers,” Mr Crawford added.