(Reuters) – Healthcare-focused Glenview Capital Administration will meet high executives at struggling healthcare firm CVS Well being (NYSE:) on Monday to suggest methods it could possibly enhance operations, The Wall Road Journal reported on Sunday.
The hedge fund’s founder, Larry Robbins, has constructed a big place in CVS, which quantities to about $700 million of his $2.5 billion hedge fund, the report mentioned, citing an individual acquainted with the matter.
CVS mentioned it “maintains a daily dialogue with the funding group as a part of our strong shareholder and analyst engagement program,” and mentioned it could possibly’t touch upon engagement with particular companies or people.
Glenview didn’t instantly reply to a Reuters’ request for remark.
Hypothesis has mounted amongst fund managers that an activist investor could swoop in to push CVS to make adjustments that might increase its share value.
Funding agency Sachem Head Capital Administration constructed a brand new 0.2% stake within the firm through the second quarter, in line with a regulatory submitting in August.
Earlier in August, CVS reduce its annual revenue forecast to $6.40 to $6.65 per share from its prior view of at the least $7.00, marking at the least the fourth time CVS lowered its outlook for the yr.
It additionally introduced a multi-year plan to avoid wasting $2 billion in prices via measures akin to streamlining operations and utilizing synthetic intelligence and automation throughout its enterprise.
(This story has been corrected to say outlook has been revised 3 times, not 4, in paragraph 7)
