Aetna Shareholder Sues to Block Takeover by CVS Health
An Aetna Inc. shareholder has sued to block the proposed $69 billion takeover by CVS Health, claiming that the "unfair and inadequate" deal would shortchange shareholders.
January 18, 2018 at 04:29 PM
3 minute read
The Aetna world headquarters in downtown Hartford, Connecticut, on Sept. 22, 2011. Photo credit: shutterstock
An Aetna Inc. shareholder has sued to block a proposed $69 billion takeover by CVS Health, claiming that the “unfair and inadequate” deal would shortchange Aetna shareholders.
Aetna's common stock value, which has been pegged with an implied per share equity value as high as $233, represents a premium of about 113 percent over the $207.94-per-share value in the contemplated merger deal, the Aetna shareholder, Olivier Miramond, said in a civil complaint filed Tuesday in federal district court in New Haven, Connecticut, alleging violations of the federal securities laws and demanding a jury trial.
“The merger consideration in the proposed transaction is unfair and inadequate, because, among other things, the intrinsic value of the company and its common stock is materially in excess of the amount offered given the company's prospects for future growth and
earnings,” according to the complaint. “As a result, the proposed transaction will deny class members their right to fully share equitably in the true value of the company.”
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