Investing.com — CVS Well being (NYSE:) is reportedly mulling choices that would come with the corporate breaking apart its retail and insurance coverage divisions, Reuters reported.
Citing folks acquainted with the matter, the information company stated CVS Well being has been discussing a number of choices, together with the method of a break up, with its monetary advisors in latest weeks.
The plan has been part of conversations among the many agency’s board of administrators, though it has not but selected the perfect plan of action, Reuters added.
Unnamed sources additionally advised Reuters that the plans haven’t been finalized and CVS Well being should determine to pursue different choices.
Shares in CVS Well being edged increased in premarket US buying and selling on Tuesday. To this point this 12 months, the inventory has shed greater than 22% of its worth.
The inventory climbed by 2.4% within the prior session after The Wall Avenue Journal reported {that a} high hedge fund investor is planning to satisfy with executives at CVS Well being to suggest methods for the ailing healthcare group to bolster its efficiency.
The paper stated the assembly could possibly be the beginning of the hedge fund, Glenview Capital Administration, doubtlessly taking an activist stance in its dealings with the CVS Well being.
Glenview’s founder Larry Robbins has constructed a big stake within the firm, the WSJ reported. CVS Well being quantities to roughly $700 million of Robbins’ $2.5 billion hedge fund, it stated, including that Glenview owns about 1% within the group’s shares excellent.
A spokesperson for CVS Well being advised Investing.com that the corporate “maintains a regular dialogue with the investment community as part of our robust shareholder and analyst engagement program.”
“Beyond that,” the spokesperson stated, “we cannot comment on engagement with specific firms or individuals.”
In August, CVS Well being slashed its full-year revenue forecast to $6.40 to $6.65 per share, down from a previous outlook of no less than $7.00. It was no less than the fourth time CVS Well being has lowered its steerage this 12 months.
CVS Well being laid out plans to attain $2 billion in price financial savings by streamlining its operations and using rising instruments like synthetic intelligence and automation.
(Reuters contributed reporting.)