The Caremark Proxy Battle is Joined

Yesterday, after the Caremark board of directors spurned the Express Scripts merger proposal, Express Scripts announced that it is making four nominations to the Caremark board through a proxy vote effort. Today, it was revealed in an SEC filing that an Express Scripts subsidiary “bought 591,000 shares of Caremark Rx Inc. last month for almost $30 million.” CVS is not pleased.

In a separate development, a federal judge in Nashville, TN, where Caremark is headquartered, has dismissed two shareholder suits challenging the CVS merger proposal “on grounds that [the suits] cover the same issues as a separate case pending in chancery court in Delaware,” where Caremark is incorporated.