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WILMINGTON, Del. (AP) - A Delaware judge on Friday refused to invalidate a $675 million breakup fee aimed at protecting the proposed acquisition of pharmacy benefits manager Caremark Rx Inc. by drugstore giant CVS Corp.
Chancellor William B. Chandler III nevertheless ordered that a Caremark shareholder meeting to vote on the deal not be held until at least 20 days after Caremark properly informs shareholders about several issues. These include their "appraisal rights" regarding a $6 cash dividend offered by CVS and the fact that $35 million in payments to Caremark's investment bankers were contingent on the bankers initially issuing favorable recommendations about the merger.
"At this stage, however, no broader injunction is necessary," the judge wrote in a 38-page opinion.
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