CVS Health Corp saw it stock price climb by 1.7% on Monday after news broke of planned a meeting between the healthcare giant and its major hedge fund investor, Glenview Capital Management, according to a report by MorningStar.
The rise in stock price came as CVS also confirmed plans to lay off approximately 2,900 employees, as part of its previously announced cost-cutting initiative. In early trading, CVS’s shares (CVS) were up $1.65 to $63.03.
According to a report by the Wall Street Journal, Glenview CEO Larry Robbins was expected to meet with CVS Chief Executive Karen Lynch to present ideas on reinvigorating the company, without proposing a breakup. The meeting comes amid a tough year for CVS, with its stock down more than 22% year-to-date, compared to the S&P 500’s 20% gain over the same period.
The Wall Street Journal also revealed that Glenview has taken a roughly $700m stake in CVS, which represents a substantial portion of Glenview’s $2.5bn fund. The hedge fund’s position in CVS equates to around 1% of the company’s outstanding shares.
