Express Scripts amends Medco merger agreement; lowers termination fee
ST. LOUIS — In an amendment dated Nov. 7 and filed to the Securities Exchange Commission on Tuesday, Express Scripts reduced its termination fee by 32% to $650 million. The termination fee is paid to one company when the other terminates the merger agreement.
The change was made to settle lawsuits against Medco accusing the company of selling itself too cheaply to Express Scripts, according to a research note by Bank of America Merrill Lynch analysts published on Tuesday, as reported by the New York Times. The lower fee may create more interest among rivals hoping to compete for Medco, the analysis concluded.