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|Express Scripts Comments on Delaware Court of Chancery Ruling|
Court Again Enjoins Caremark Vote on Acquisition by CVS, This Time for at Least 20 Days
Recognizes Caremark Stockholders Have Appraisal Rights
ST. LOUIS, Feb. 23 /PRNewswire-FirstCall/ -- Express Scripts, Inc. (Nasdaq: ESRX) today commented on the ruling by the Court of Chancery of the State of Delaware that it has again enjoined Caremark Rx, Inc. (NYSE: CMX) from holding a stockholder vote regarding the CVS acquisition, this time until at least 20 days after Caremark discloses to stockholders their right to seek appraisal and the structure of fees paid to Caremark's bankers.
The Court ruled that the $6.00 "special dividend" to be paid to Caremark stockholders following an acquisition by CVS constitutes cash merger consideration and entitles stockholders to appraisal rights. In reaching this conclusion, the Court made several observations regarding the conduct of Caremark's directors:
"[It] is not without some irony: it is plaintiffs, not Caremark's directors, who have convincingly asserted an entitlement to appraisal."
Express Scripts commented: "We agree with the Court's observations concerning inadequacies in the Board's process in the sale of Caremark. Given today's ruling, we are hopeful that the best interests of Caremark stockholders can finally be served.
"We remain ready to sit down and start discussions with the Caremark Board. The Express Scripts offer provides superior value and we look forward to commencing confirmatory due diligence as soon as possible. The advantages of an Express Scripts-Caremark combination are strategically and financially compelling. Express Scripts is offering Caremark stockholders a superior currency and greater certainty of value than CVS and has taken a number of tangible and important steps to consummate a transaction. The Company is confident that an Express Scripts-Caremark combination will deliver superior value to our respective stockholders, plan sponsors and patients."
Caremark stockholders are reminded that their vote is important. Stockholders may be able to vote their shares by telephone or by the Internet, and are advised that if they have any questions or need any assistance in voting their shares, they should contact Express Scripts' proxy advisor, MacKenzie Partners, Inc. Toll-Free at 800-322-2885.
Skadden, Arps, Slate, Meagher & Flom LLP, Arnold & Porter LLP, and Young Conaway Stargatt & Taylor, LLP are acting as legal counsel to Express Scripts, and Citigroup Corporate and Investment Banking and Credit Suisse are acting as financial advisors. MacKenzie Partners, Inc. is acting as proxy advisor to Express Scripts.
Safe Harbor Statement
This press release contains forward-looking statements, including, but not limited to, statements related to the Company's plans, objectives, expectations (financial and otherwise) or intentions. Actual results may differ significantly from those projected or suggested in any forward-looking statements. Factors that may impact these forward-looking statements include but are not limited to:
Risks and uncertainties relating to the proposed transaction that may impact forward-looking statements include but are not limited to:
We do not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Express Scripts has filed a proxy statement in connection with Caremark's special meeting of stockholders at which the Caremark stockholders will consider the CVS Merger Agreement and matters in connection therewith. Express Scripts stockholders are strongly advised to read that proxy statement and the accompanying form of GOLD proxy card, as they contain important information. Express Scripts also intends to file a proxy statement in connection with Caremark's annual meeting of stockholders at which the Caremark stockholders will vote on the election of directors to the board of directors of Caremark. Express Scripts stockholders are strongly advised to read this proxy statement and the accompanying proxy card when they become available, as each will contain important information. Stockholders may obtain each proxy statement, proxy card and any amendments or supplements thereto which are or will be filed with the Securities and Exchange Commission ("SEC") free of charge at the SEC's website (http://www.sec.gov) or by directing a request to MacKenzie Partners, Inc., at 800-322-2885 or by email at firstname.lastname@example.org.
In addition, this material is not a substitute for the prospectus/offer to exchange and registration statement that Express Scripts has filed with the SEC regarding its exchange offer for all of the outstanding shares of common stock of Caremark. Investors and security holders are urged to read these documents, all other applicable documents, and any amendments or supplements thereto when they become available, because each contains or will contain important information. Such documents are or will be available free of charge at the SEC's website (http://www.sec.gov) or by directing a request to MacKenzie Partners, Inc., at 800-322-2885 or by email at email@example.com.
Express Scripts and its directors, executive officers and other employees may be deemed to be participants in any solicitation of Express Scripts or Caremark shareholders in connection with the proposed transaction. Information about Express Scripts' directors and executive officers is available in Express Scripts' proxy statement, dated April 18, 2006, filed in connection with its 2006 annual meeting of stockholders. Additional information about the interests of potential participants is included in the proxy statement filed in connection with Caremark's special meeting to approve the proposed merger with CVS and will be included in any proxy statement regarding the proposed transaction. We have also filed additional information regarding our solicitation of stockholders with respect to Caremark's annual meeting on a Schedule 14A pursuant to Rule 14a-12 on January 9, 2007.
About Express Scripts
Express Scripts, Inc. is one of the largest PBM companies in North America, providing PBM services to over 50 million members. Express Scripts serves thousands of client groups, including managed-care organizations, insurance carriers, employers, third-party administrators, public sector, and union-sponsored benefit plans.
Express Scripts provides integrated PBM services, including network- pharmacy claims processing, home delivery services, benefit-design consultation, drug-utilization review, formulary management, disease management, and medical- and drug-data analysis services. The Company also distributes a full range of injectable and infusion biopharmaceutical products directly to patients or their physicians, and provides extensive cost- management and patient-care services.
Express Scripts is headquartered in St. Louis, Missouri. More information can be found at http://www.express-scripts.com, which includes expanded investor information and resources.
Investor Contacts: Media Contacts: Edward Stiften, Steve Littlejohn, Chief Financial Officer Vice President, Public Affairs David Myers, (314) 702-7556 Vice President, Investor Relations (314) 702-7173 Steve Balet / Laurie Connell Joele Frank / Steve Frankel MacKenzie Partners, Inc. Joele Frank, Wilkinson Brimmer Katcher (212) 929-5500 (212) 355-4449
SOURCE Express Scripts, Inc.
CONTACT: Investors: Edward Stiften, Chief Financial Officer, or David Myers, Vice President, Investor Relations, +1-314-702-7173, both of Express Scripts, Inc., or Steve Balet or Laurie Connell of MacKenzie Partners, Inc., +1-212-929-5500; or Media: Steve Littlejohn, Vice President, Public Affairs, of Express Scripts, Inc., +1-314-702-7556, or Joele Frank or Steve Frankel of Joele Frank, Wilkinson Brimmer Katcher, +1-212-355-4449