Judge denies DOJ’s request to approve merger, orders another hearing...

https://apple.news/AqGZQBkgwSDCPGBuFeTgljQ

Interesting... So the Department of Justice had asked the judge overseeing the CVS-Aetna merger, to just approve the merger once and for all. Instead of approving the merger, he orders another hearing where witnesses will be allowed to testify as to why they feel this merger should OR shouldn’t go forward. For what it’s worth a few organizations oppose the merger, one of those opposing the merger is the American Medical Association. So the saga continues, and the court review process goes on.

For those who said there’s NO way this merger gets denied, don’t count your chickens before they hatch. This merger could be in trouble now! The stock was down today on that news. And you guys can laugh and ridicule me all you want, but the judge does have authority to make things VERY difficult for CVS. Remember that cvs went “all-in” on this merger. IF things don’t go the way our CEO planned, and the judge rules against the merger, expect the stock to tank below 40...

Comment! It's anonymous!

7 replies (most recent on top)

I posted a few weeks ago that the merger might be in trouble, and everyone laughed at me! Who’s laughing now?

Let us watch April 5th, with Judge Leon, shall we?

If they did this the RIGHT way from the beginning we wouldn't even be having this conversation! Instead CVS chose to finalize the merger BEFORE getting a judge's approval, and now they are paying the price.

Except in the beginning of this whole process, the judge in this case said and I quote... "You'd better be prepared to unwind this thing should an unwinding be necessary" He has since backed down from those comments, but if he said that in court, then it leads me to believe that he has more authority than you guys realize. He might not be able to stop the merger altogether, but he can rule against it. CVS is learning the hard way... Don't piss off a federal judge! I agree the longer this goes on, the more the chance this doesn't end well.

The only thing this judge can do is cause some additional business to be sold in markets where it would make for anti-trust issues. This judge can't re-litigate the entire merger from scratch. If they have to sell a piece of business in a couple of markets, they are probably already trying to figure that out with the little bit of information they can get of what could be expected from them (or not).

There were two ways the judge could’ve ruled here... He could’ve approved the merger OR he could’ve ordered another hearing. He chose to order another hearing which was NOT what cvs wanted to hear. The longer this thing drags on the more likely it ends badly for corporate.

Oh I hope so. The board will kick Merlo and the rest of goons out the door for pissing a federal judge off and botching the merger. Maybe will have a fighting chance of having a CEO that can change the culture in this company from fear driven to team driven

Thread regarding CVS layoffs

Judge denies DOJ’s request to approve merger, orders another hearing...

7 replies (most recent on top)

Post a reply