CVS/Caremark Merger Closes

CVS Corp. and Caremark Rx Inc. announced today that they have completed their merger, which unites the country's biggest pharmacy chain and a leading pharmaceutical services company into the nation's "premier integrated pharmacy services provider." The new entity is called CVS/Caremark Corp. Effective today, trading will cease in Caremark Rx. The new company will trade under the symbol CVS. The company says that in about five days, it will begin a cash tender offer for 150 million (approximately 10%) of its outstanding shares at a fixed price of $35 per share. Tom Ryan, CVS/Caremark’s President and CEO: “Today’s close of our landmark merger will enable us to begin delivering substantial benefits to shareholders, customers and employees...Together we will deliver unique products and services that are responsive to the needs of employers, health plans and consumers, and do it in more convenient and flexible ways that allows consumers to take more control of their healthcare needs.”

Sources: Press release, Reuters
Commentary: CVS Shareholders Approve Caremark Buyout; Calpers Opposes Deal • Express Scripts: After Losing Caremark Bid, Will Medco Be the Next Target? • Is CVS' Bid the Fix Caremark Investors Need?
Stocks/ETFs to watch: CVS Corp. (CVS), Caremark Rx, Inc. (CMX). Competitors: Express Scripts, Inc. (ESRX), Medco Health Solutions Inc. (MHS), UnitedHealth Group Inc. (UNH), Wal-Mart Stores, Inc. (WMT). ETFs: iShares Dow Jones US Healthcare Provider (IHF), Retail HOLDRs (RTH)
Conference call transcripts: CVS Q4 2006

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