Nov 26, 2019

Activist investor takes small stake in CVS

Illustration: Sarah Grillo/Axios

Starboard Value, the activist hedge fund led by Jeffrey Smith, has taken a "relatively small" stake in CVS Health Corp. (NYSE: CVS), per the Wall Street Journal.

Why it matters: We don't know what Starboard wants from CVS, except that it isn't the status quo. Plus, this comes just weeks after reports that private equity is kicking the tire on CVS rival Walgreens, while Starboard just realized a win yesterday when eBay agreed to sell StubHub to Viagogo for $4 billion.

  • Market reactions: CVS shares rose more than 1.7% on Monday, giving it a market cap of nearly $100 billion.
  • The bottom line: "Starboard is one of the top activist-investment firms and its presence in a stock usually causes a company to sit up and take notice." — Corrie Driebusch, WSJ

Go deeper: Walgreens' outsized role in the opioid epidemic

Go deeper

California fines CVS $3.6M for failing to redeem recyclables

A CVS Pharmacy on a sunny day in San Ramon, California. Photo: Smith Collection/Gado/Getty Images

California is fining CVS a record $3.6 million for failing to redeem deposits on recyclable bottles and cans in some locations, regulator CalRecycle said in a statement Tuesday.

Why it matters: CVS is the largest pharmacy health care provider in the U.S. CalRecycle said it filed the enforcement action against the firm last week after finding that 81 of CVS Pharmacy's 848 California stores hadn't redeemed the recyclables or paid an alternative $100 daily fee as required.

What they're saying: CVS said in a statement to MarketWatch the company is "committed to contributing to healthier, more sustainable communities and we are currently reviewing the state of California’s filing."

  • CalRecycle said the company is entitled to an evidentiary hearing.

Go deeper: California plays by its own rules

Keep ReadingArrowDec 10, 2019

NortonLifeLock approached by McAfee, private equity firms

Photo: Cristina Arias/Cover/Getty Images)

NortonLifeLock, a consumer cybersecurity software maker, has received takeover interest from rival McAfee, per the WSJ. The private equity pairing of Advent International and Permira also may bid.

Why it matters: Because any deal would involve big dollars — NortonLifeLock's market cap is nearly $16 billion — and a complex backstory.

Go deeperArrowDec 10, 2019

Pre-Thanksgiving Merger Monday sees over $60 billion in announced deals

Illustration: Sarah Grillo/Axios

It's been a while since we've had a full-fledged Merger Monday, but today we've seen over $60 billion in announced deals.

Why it matters: This isn't about a macro economic shift. It's about bankers and boards wanting to enjoy their Thanksgiving breaks, without constant cell phone pings.

Go deeperArrowNov 25, 2019