ESRX) opening a tender offer for Caremark shares. Last week, Nashville, Tenn.-based Caremark rejected a $26 billion cash-and-stock proposal from Express Scripts in favor of its already announced CVS merger. Caremark said the Express Scripts bid lacked strategic rationale and could raise antitrust concerns. St. Louis-based Express Scripts responded that it believes Caremark shareholders should decide what deal they want. It pledged to begin a proxy fight to replace four Caremark directors. On Tuesday, Woonsocket, R.I.-based CVS and Caremark said they plan to stay the course. "As a result of further preliminary joint integration planning, the companies said they now expect to achieve between $800 million and $1 billion in incremental revenues in 2008 and significantly more thereafter," CVS and Caremark said late Tuesday. "The incremental revenues are expected to be generated by the differentiated new offerings that only a drugstore/PBM combination can provide."
CVS initially said it expected $400 million in so-called merger synergies from a Caremark deal. It raised that figure to $500 million earlier this month, matching Express Scripts' savings estimate. Caremark rose 93 cents late Tuesday to $57.18.