I’m sure everyone will agree that this is taking too long, up to a degree that it’s hurting the company? I would like some honest thoughts on when this whole situation in court could end , realistically, and is there any doubt on what the outcome might be?
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The hearing is scheduled for June 3 and is expected to last 3 days maximum. More and more things keep coming out that are not looking good for CVS. I guess we will find out in a few weeks. However, in the meantime I am sure that layoffs are inevitable on both sides and they should just start them now. The hostile environment that Aetna has become is a hazard to all their employees health.
What’s going to doom this merger, is CVS’ stubborn insistence that it’s their way or the highway. All throughout this court process, Judge Leon has made it clear he doesn’t like the deal cvs and the gov’t made, and he doesn’t feel this merger is good for the American consumer. CVS has done NOTHING to change his mind. All they have repeatedly said is “the deal we made is fine, just approve the merger”. And the gov’t has said the same thing too. CVS is refusing to compromise even one inch! I think cvs doesn’t want the Judge paying attention to that man behind the curtain. My point is, they got a SWEET deal from the DOJ and they know it. That’s why cvs was hoping Judge Leon would have just approved the merger right away as opposed to paying attention to the man behind the curtain and exposing the sweet deal they got.
This next court hearing scheduled for this month (May) should be telling. After this next hearing where witnesses on both sides
will be able to speak, I see no reason why he won’t be ready to make a decision. Right now, it seems to be favouring a rejection of the merger, but one of the previous posters is probably right. It’s 50/50. But the merger is in trouble that much I believe.
It is hurting the company without a doubt. Depending on this judge, This could potentially be in litigation and appeals. It is 50/50 whether he is trying to just prove a point, or he really believes the merger is bad for the industry. Also don’t underestimate the power of lobbyists on either side to sway his decision behind closed doors. After all this he could just end up approving it with no problem. CVS could also continue to antagonize him and force them to run these two companies separately indefinitely. The delay now and any in the future will cost us millions in legal fees. If he forces the companies to run separately, all the synergies of the merger CVS bragged to Wall Street about will be out the window. That scenario would have potential fatal consequences CVS Health. Aetna may survive, but CVS would be finished.