Glenview Capital to push CVS Health to make changes - Wall Street Journal

Investing.com -- A top hedge fund investor is planning to meet with top executives at CVS Health to propose ways for the ailing healthcare group to bolster its performance, according to The Wall Street Journal.

Citing people close to the matter, the paper said the meeting could be the start of the hedge fund, Glenview Capital Management, potentially taking an activist stance in its dealings with CVS Health.

Shares in CVS Health (NYSE:CVS ) rose in premarket US trading following the report.

Glenview's founder Larry Robbins has built a large stake in the company, the WSJ reported. CVS amounts to roughly $700 million of Robbins' $2.5 billion hedge fund, it said, adding that Glenview owns about 1% in CVS's shares outstanding.

Robbins is anticipated to meet with CVS chief executive Karen Lynch and others to discuss ways to turn around the business, although not a break up of the firm, the WSJ said.

A spokesperson for CVS Health did not immediately respond to a request for comment from Investing.com.

Investment group Sachem Head Capital Management also previously took a fresh stake in CVS Health in the second quarter after a steep drop in its share price, Reuters reported in August.

Sachem Head owned 2.45 million shares or about 0.20% of the company as of June 30, according to regulatory filing cited by the news agency.

Reuters added that there has been increased speculation that an activist investor could push CVS Health to make changes in a bid to boost its share price. So far this year, the stock has shed more than 24% of its value.

In August, CVS Health slashed its full-year profit forecast to $6.40 to $6.65 per share, down from a prior outlook of at least $7.00. It was at least the fourth time the firm has lowered its guidance this year.

CVS Health has also laid out plans to achieve $2 billion in cost savings by streamlining its operations and utilizing emerging tools like artificial intelligence and automation.

(Reuters contributed reporting.)

Source: Investing.com