By Corrie Driebusch
Activist investor Starboard Value LP has taken a stake in CVS Health Corp. and held talks with the drugstore-and-insurance giant's management, according to people familiar with the matter.
The stake appears to be relatively small and the people said the talks, held recently, are amicable. How much Starboard currently owns and what it has discussed with the company couldn't be learned. But Starboard is one of the top activist-investment firms and its presence in a stock usually causes a company to sit up and take notice.
CVS shares have been on a roller-coaster ride since the company acquired health insurer Aetna Inc. for nearly $70 billion almost a year ago. The deal married CVS's sprawling drugstore network and pharmacy-benefit manager with one of the nation's largest health insurers.
The stock fell sharply after the Woonsocket, R.I., company in February issued a downbeat earnings projection for the year due to challenges in its pharmacy-benefits and long-term-care businesses. The shares went on to rebound sharply as the company reported a string of unexpectedly strong financial results, and research analysts have taken a more favorable view.
--Sharon Terlep contributed to this article.
Write to Corrie Driebusch at firstname.lastname@example.org