Express Scripts Finally Completes Merger of Medco Health
Finally the merger of Express Scripts (ESRX) and Medco Health (MHS) closed today . It took since last July to close the merger and any investors holding on this period had limited gains. See graph below nothing the Medco stock closed around $67 around the announcement and only recently reclaimed those levels. Unfortunately our Net Payout Yields model held onto the stock for that period, but at least the end result has been positive. As of the close today, each original Medco share would be worth $73.75. Now the key to holding Express Scripts going forward will be whether the combined company continues funding huge dividends and buybacks. See our previous blog post after the original announcement. Details from the PR: Following consummation of the acquisition, each share of pre-closing Medco common stock was converted into (i) the right to receive $28.80 in cash, without interest and (ii) 0.81 shares of common stock of the new Express Scripts The company expects syn...