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

(Reuters) – Healthcare-focused Glenview Capital Management will meet with top executives at struggling CVS Health on Monday to propose ways it can improve operations, The Wall Street Journal reported on Sunday.

Hedge fund founder Larry Robbins has built a large position in CVS that amounts to 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 specific firms or individuals.

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

Speculation has gathered among fund managers that an activist investor could step in to push CVS to make changes that would boost its share price.

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

In early August, CVS cut its full-year profit forecast to $6.40 to $6.65 per share, from its previous outlook of at least $7.00, marking at least the fourth time that CVS has lowered the outlook for the year.

It 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.

(This story was corrected to say the outlook was revised three times, not four, in paragraph 7)

(Reporting by Urvi Dugar; Additional reporting by Harshita Meenaktshi; Editing by Leslie Adler and Marguerita Choy)