CVS Health, AET Merger Call
- Halt of share repurchase program is in effect as of today.
- May re purpose store space to expand retail clinics.
- Announcement has no baring on providing service to ANTM.
- AET- Not giving guidance, will provide projections in S-4 when it is released; Still sees a flat revenue year in 2018; headwinds and tailwinds remain the same from its last earnings call; AET also will not be repurchasing shares which would be the only key difference between the current projections.
- Of the $750 mln synergies for 2019, notes it is all cost synergies, not revenue synergies; Longer term there is more opportunities to grow revenues.
- Cost of the debt will depend on the tenor it places its portfolio; Current thinking is in the 4% zip code.
CVS slides to $72.41 on the call; AET has pulled back about 3 points from its highs, $184 is setting yup as early support.