CVS Health Corp saw it stock price climb by 1.7% on Monday after news broke of planned a meeting between the healthcare giant and its major hedge fund investor, Glenview Capital Management, according to a report by MorningStar.
The rise in stock price came as CVS also confirmed plans to lay off approximately 2,900 employees, as part of its previously announced cost-cutting initiative. In early trading, CVS’s shares (CVS) were up $1.65 to $63.03.
According to a report by the Wall Street Journal, Glenview CEO Larry Robbins was expected to meet with CVS Chief Executive Karen Lynch to present ideas on reinvigorating the company, without proposing a breakup. The meeting comes amid a tough year for CVS, with its stock down more than 22% year-to-date, compared to the S&P 500’s 20% gain over the same period.
The Wall Street Journal also revealed that Glenview has taken a roughly $700m stake in CVS, which represents a substantial portion of Glenview’s $2.5bn fund. The hedge fund’s position in CVS equates to around 1% of the company’s outstanding shares.
$2bn tech-focused hedge fund SoMa Equity Partners to shutter
San Francisco-based hedge fund SoMa Equity Partners is winding down after returning capital to investors, bringing the curtain down on a…
More
Arcana hires former Goldman Sachs exec to Lead EMEA expansion
Portfolio intelligence provider Arcana has appointed former Goldman Sachs executive Rhys Williams as head of EMEA, as the technology firm…
More
ExodusPoint adds Pictet trader to London equities team
Multi-strategy hedge fund major ExodusPoint Capital Management has strengthened its London equities operation with the appointment of Jade…
More