Uneasy At Being Treated As A ‘Rubber Stamp,’ Federal Judge Threatens CVS-Aetna Deal Closed Earlier In Week
Judge Richard Leon of the U.S. District Court for the District of Columbia raised the prospect of not deciding on the deal until the summer, or perhaps rejecting it, before setting another hearing for Monday. CVS, meanwhile, countered that “it’s commonplace for acquisitions to close before this final step in the process is complete."
U.S. Judge Raises Prospect Of Not Approving CVS-Aetna Deal
In an unusual move on Thursday, a federal judge raised the prospect of not approving CVS Health Corp's deal to buy insurer Aetna Inc, which closed earlier this week, during a routine portion of the legal process. Judge Richard Leon of the U.S. District Court for the District of Columbia objected to what he said was the government’s and companies’ treatment of him as a "rubber stamp" for the deal, noting that CVS had closed its deal to buy Aetna for $69 billion on Wednesday. (11/29)
In other health industry news —
Bayer To Cut 12,000 Jobs, Exit Vet Unit Amid Drag From Suits
Bayer AG plans to cut 12,000 jobs and exit its animal health business in an effort to mollify Wall Street, which has punished the company over the tidal wave of lawsuits that came alongside the $63 billion takeover of Monsanto Co. The German company announced a rash of moves, including exiting the sun-care and foot-care segments, that it said would boost its core pharma and agricultural businesses. The cuts, including a significant number in Germany -- where layoffs are politically sensitive -- represent about 10 percent of the workforce. The shares fell 2.3 percent as of 5 p.m. in Frankfurt trading, erasing initial gains after the announcement. (Loh and Kresge, 11/29)