Monday, December 18, 2006

A bidding war for Caremark

US healthcare company Express Scripts announced a US$26 billion counter-offer for drug distributor Caremark Rx on Monday, besting a US$21 billion bid by the CVS pharmacy chain.

Express Scripts said in a statement that it was seeking to buy all of Caremark's outstanding shares for US$29.25 in cash and 0.426 shares of Express Scripts stock for each Caremark share.

The fresh bid is worth approximately US$26 billion or US$58.50 per Caremark share based on Express Scripts' closing stock price on Friday.

"This opportunity is very compelling as it offers significant value to stockholders, plan sponsors and patients," said Express Scripts' chief executive George Paz. A Caremark tie up with Express Scripts would forge the world's pre-eminent pharmacy benefit management company, Express Scripts claimed.

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