Oak Street Health (NYSE:OSH) fell 6.8% on a report that CVS Health (NYSE:CVS) is unlikely to purchase the first care service supplier.
CVS is unlikely to by Oak Street Health (OSH) because it has a number of different points it is coping with, together with its deliberate $8 billion acquisition of Signify Health (SGFY), in accordance to an Axios report, which cited feedback from sell-side analysts, bankers and advisers on the sidelines of the JPMorgan Healthcare convention final week.
One unidentified banker stated that the CVS (CVS) did not have the cash to purchase Oak Street Health (OSH) proper now.
The report comes after Bloomberg final Monday reported that CVS (CVS) was exploring a $10 billion purchase of the Oak Street Health (OSH), sending its shares skyrocketing 27% final Tuesday. CVS Health CEO Karen Lynch final Tuesday stated the corporate will proceed to search for extra property, together with main care capabilities.
The Axios report additionally comes after Dealreporter in October threw chilly water on report that CVS Health was in talks to purchase Oak Street competitor Cano Health (CANO).
The report in regards to the CVS curiosity in Oak Street prompted Raymond James on Friday to improve Oak Street (OSH) to an outperform from a market carry out.