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(Reuters) – Healthcare-focused Glenview Capital Administration has established a big place in CVS Well being (NYSE:) and can meet prime executives on the struggling healthcare firm on Monday to suggest methods it will possibly enhance its operations, The Wall Road Journal reported on Sunday.
The hedge fund’s founder Larry Robbins plans for the potential begin of an activist stance as CVS quantities to about $700 million of his $2.5 billion hedge fund, the report added citing an individual aware of the matter.
Glenview’s place is an indication of Robbins’s perception within the firm’s potential and his confidence he can get executives to pursue a brand new path, as per WSJ.
CVS and Glenview didn’t instantly reply to a Reuters’ request for remark.
Hypothesis has mounted amongst fund managers that an activist investor might swoop in to push CVS to make adjustments that will enhance its share value.
Funding agency Sachem Head Capital Administration constructed a brand new 0.2% stake within the firm throughout the second quarter, in line with a regulatory submitting in August.
Earlier in August, CVS took down its annual revenue forecast to $6.40 to $6.65 per share from its prior view of at the very least $7.00, marking at the very least the fourth time the healthcare conglomerate lowered its outlook for the yr.
It additionally introduced a multi-year plan to save lots of $2 billion in prices by measures corresponding to streamlining its operations and utilizing synthetic intelligence and automation throughout its enterprise.
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