Glenview to meet with top CVS executives and propose operational improvements, WSJ reports

(Reuters) – Health care specialist Glenview Capital Management will meet with top executives of troubled health care company CVS Health on Monday to propose ways to improve its operations, the Wall Street Journal reported on Sunday.

Hedge fund founder Larry Robbins has built a large position in CVS worth about $700 million of his $2.5 billion hedge fund, the report said, citing a person familiar with the matter.

CVS said it “maintains regular dialogue with the investment community as part of our robust shareholder and analyst engagement program,” and said it could not comment on engagement with companies or specific individuals.

Glenview did not immediately respond to a Reuters request for comment.

Speculation has grown among fund managers that an activist investor might step in to push CVS to make changes that could boost its stock price.

Investment firm Sachem Head Capital Management acquired a new 0.2% stake in the company during the second quarter, according to a regulatory filing in August.

Earlier in August, CVS lowered its annual earnings forecast to $6.40 to $6.65 per share from its previous forecast of at least $7.00, marking at least the fourth time CVS has lowered its outlook for the year.

The company also announced a multi-year plan to save $2 billion in costs through measures such as streamlining operations and using artificial intelligence and automation across its business.

(Reporting by Urvi Dugar; additional reporting by Harshita Meenaktshi; editing by Leslie Adler and Marguerita Choy)