The looming marriage between CVS (CVS Quote) and Caremark (CMX Quote) has left investors with cold feet.
Shares of both companies dropped sharply Wednesday, dragging their pharmacy industry peers with them, after the surprising union was announced. The merger will, for the first time, unite a giant drugstore chain with a leading pharmacy benefit manager. It could reshape the entire drug-supply business.
But some observers were left wondering whether CVS isn't in over its head trying to integrate two big mergers at once. Others wondered why Caremark would be eager to sell out in a no-premium transaction -- particularly when its shares have fallen more than 15% since Wal-Mart (WMT Quote) stunned the industry with a plan to sell generic prescription drugs cheaper. ...
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