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Caremark Inc. Clears Hurdle in Acquisition

June 23, 1987|CARLA LAZZARESCHI | Times Staff Writer

Caremark Inc. said Monday that federal antitrust regulators have not requested additional information regarding the proposed $528-million acquisition of the company by Baxter Travenol Laboratories Inc., clearing a "major hurdle" in the routine governmental review of the pending deal.

Caremark, headquartered in Newport Beach, said it tentatively has set Aug. 18 for a shareholder meeting to give final approval to the acquisition and merger with Baxter Travenol.

In early May, Caremark and Baxter Travenol announced that they had agreed to merge operations in an all-stock deal that calls for Baxter Travenol, a major manufacturer of pharmaceuticals and medical supplies, to exchange $21.33 worth of its common stock for each share of Caremark, which supplies in-home intravenous drug therapy.

The merger will make the new Caremark division of Baxter one of the nation's largest suppliers of in-home medical treatment.

Officials have said they expect the deal to be completed before Sept. 1.

In a separate and unrelated filing with the U.S. Securities and Exchange Commission, Bear, Stearns & Co., a New York brokerage and investment banking firm, revealed that it holds a 5.16% stake in Caremark on behalf of itself and its clients. The brokerage house characterized the holdings as an investment.

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