Glenview reportedly to meet top CVS brass, propose operational improvements
Glenview Capital Management will reportedly meet top executives at CVS Health to suggest ways it can improve operations, per a Reuters report, which cited a Wall Street Journal report on Sunday.
According to the report, Larry Robbins, the hedge fund's founder, has built a large position in CVS, which amounts to about $700 million of his $2.5 billion hedge fund, the report said, citing a person familiar with the matter.
According to the Reuters report, CVS said it "maintains a regular dialogue with the investment community as part of our robust shareholder and analyst engagement program," and said it can't comment on engagement with specific firms or individuals.
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Glenview did not immediately respond to a Reuters' request for comment.
The report also said that speculation has mounted among fund managers that an activist investor may come in to push CVS to make changes that would increase its share price.
Additionally, the report said investment firm Sachem Head Capital Management built a new 0.2% stake in the company during the second quarter, according to a regulatory filing in August.
Earlier in August, CVS cut its annual profit forecast to $6.40 to $6.65 per share from its prior view of at least $7.00, marking at least the third time CVS lowered its outlook for the year, the report said, noting, "It also announced a multi-year plan to save $2 billion in costs through measures such as streamlining operations and using artificial intelligence and automation across its business."
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