Thread regarding CVS layoffs

One thing to consider however, is that EVERYONE is calling this 3-day evidentiary hearing that started today, unprecedented. Very rare to have this kind of hearing in a Tunney Act merger review. This hearing is legal and allowable in a Tunney Act merger review, but very few judges if any, have initiated this kind of hearing. Now Judge Leon has said that this wouldn’t be the last hearing in this process. There will be at least one additional hearing for attorneys to argue their positions as well.

My point is that IF Judge Leon was simply making a point and grinding his ax with the DOJ, I think he’s made his point and it’s time to approve the merger agreement and let’s end this and move forward. But many articles I’ve read question what is his end game here, and how far can he legally take this? Judge Leon is exploring uncharted territory here, and people are scratching their heads over what his next move might be. One thing is that he CAN reject the settlement Cvs and the government made and he can force them to renegotiate a new agreement from scratch. That would be a disaster! And of course that would mean an appeal which would really throw a money wrench into things!

The judge has a problem with the DOJ, not CVS.

“While the DOJ argued that Leon's role in reviewing the deal is largely procedural, CVS outlined four measures it has promised to comply with in order to keep key operations separate until Leon reaches his final decision.

Leon praised CVS for the being "appropriately deferential to the court." That's strikingly different from the criticism he heaped on the DOJ, saying the department was "tone deaf, intemperate, not helpful and unnecessarily defensive."

This looks more and more like the judge showing up the DOJ more than anything, just look at the AT&T and Time Warner deal. Once again highly unlikely this goes to a point where DOJ or CVS files suit, or the opposing parties.

The opposing parties are claiming this will hurt consumers, which makes no sense. Every one is looking out for their own self interest but for an opposing party not only to file suit, but to win has almost no chance. With United Health, Cigna, Anthem, Humana all running their own Pam operations they don’t have a valid argument. Just my 2 cents.

I still think this case is headed for the appeals courts. Chances are becoming more likely that Judge Leon will change this deal and add conditions in order to win/gain his approval. I really do think that cvs/doj will appeal ANY conditions the judge adds. My reasoning being that cvs and the gov't have really taken a hard-line stance with the judge that the original deal they made is sufficient to answer any concerns regarding competition/anti-trust, etc. If the case goes to appeals, then this will push finalization of the merger into 2020.

" And if he just approves the deal with minor tweaks, the opposing sides will no doubt appeal."

Highly unlikely, it would be a very expensive endeavor. CVS & the DOJ have their own lawyers.

The cost mostly comes from the delay of the integration process.

While he may not be able to undo the merger itself, Judge Leon CAN change the agreement cvs/aetna made with the department of justice. Now any conditions he adds will no doubt cause both cvs and the Doj to appeal. And if he just approves the deal with minor tweaks, the opposing sides will no doubt appeal. So either way it seems fairly certain that this court case will go on till at least 2020 sometime. That sets the merger back what 2+ years? That’s a lot of time, and time is money for cvs. Not to mention the pricey lawyer fees! This whole case may begin to affect our bottom line to the point of showing up negatively in a quarterly earnings report someday.

The investor day was set up months ago.

Hard to believe some here still think this court hearing is about undoing the merger. Read up on the news to see what the judge is really deciding on. Like it or not no matter what the judge does the merger stays, only the the terms can change.

I hope somehow this Atena deal falls through. Would make me very happy to watch the fool we have as a ceo cry. Stupididiot health hubs....lame idea. Our customers are either forced here due to their insurance or they coupon and get stuff for pennies on the dollar.

Kinda hard to reassure investors on the same day as a court hearing.