This time the criticism comes from CtW Investment Group, which advises pension funds that own about 1.5 million shares of Caremark shares. The firm signaled it will urge Caremark stockholders, including pension funds and investment managers, to reject the $23.7 million offer.

“The CVS offer provides inadequate value to Caremark shareholders,” said the firm, according to Reuters. “The Caremark board ran a flawed negotiating process that did not seek maximum value for shareholders.” But CtW stopped short of endorsing a rival bid from Express Scripts, citing concerns about anti-trust issues and integration risks. Instead, the firm hopes to see still more offers come out of the woodwork.

Last week, proxy advisory firm Glass Lewis also suggested Caremark shareholders reject the CVS deal, and similarly described the negotiating process as flawed. Egan Jones previously expressed the same reservations.

Gee, if this sort of rebuke doesn’t embarrass the Caremark board into rethinking its position, what would?

[tags]Caremark, CtW Investment, CVS, Express Scripts, Glass Lewis[/tags]