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FTC Seeking Evidence Which Would Block Medco (MHS), Express Scripts (ESRX) Deal; Walgreen (WAG) Shares Rise

February 6, 2012 2:08 PM EST
MHS Hot Sheet
Overall Analyst Rating:
    NEUTRAL (= Flat)

EPS Growth %: +33.0%
A mid-day Reuters report has shares of Medco (NYSE: MHS), Express Scripts (Nasdaq: ESRX) and Walgreen (NYSE: WAG) on the move Monday afternoon.

The publication issued a report earlier suggesting a source has said the Federal Trade Commission may be collecting evidence in an attempt to block the proposed $29 billion deal between Medco and Express Scripts. The FTC's rumored move comes amid recently-increased resistance to the deal by competitors.

While Medco shares are now down 9.3 percent to $57.63, shares of Express Scripts are down 4.3 percent to $49.81. On the other side of the trade, Walgreen, which would benefit if the deal did not go through, is up 4 percent to $34.96.


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