US drugstore chain CVS has issued a statement in response to the decision by the Delaware Chancery Court to deny the motions of Express Scripts to postpone the Caremark shareholder meeting. The court noted that further delay would cause uncertainty and be disruptive to Caremark’s business. The retailer has also issued a statement in response to the announcement by Express Scripts that it expects to receive a second information request from the Federal Trade Commission in connection with the offer to acquire Caremark. CVS said that the announcement “validates the risky and highly conditional nature of its takeover offer, and serves as a stark reminder to Caremark shareholders of the substantial deficiencies in the Express Scripts bid.” CVS CEO Tom Ryan said, "The differences between the proposed CVS/Caremark merger and the Express Scripts attempted takeover could not be more clear than they are today. CVS and Caremark stand poised to begin delivering the many financial and strategic benefits afforded by our transaction. Our offer provides certainty of closure, superior shareholder value and substantial financial and healthcare benefits that stem from the unique products and services that only a CVS/Caremark combination can provide. Express Scripts has done its best to distract shareholders from the shortcomings of its highly conditional offer. Express Scripts' announcement earlier today that it had conveniently decided to increase EPS guidance is just another attempt to mask the substantial anti-trust risk inherent in its proposal. Having cleared all regulatory hurdles, we look forward to obtaining shareholder approval and closing our transaction in mid-March."
