Walgreens drops Longs bid
This article was originally published in The Tan Sheet
Walgreens withdraws its proposed purchase of all outstanding shares of Longs Drug Stores Corp. in light of the Longs' board's decision to accept the tender offer made by CVS/Caremark, Walgreens CEO Jeffrey A. Rein says in an Oct. 8 letter. Walgreens' offer of $75 per share was rejected by Longs in September (1"The Tan Sheet" Sept 22, 2008, In Brief). Rein announced Oct. 10 he was leaving after 26 years with the company, effective immediately. The Deerfield, Ill.-based company named Alan G. McNally, lead director of its board, as chairman and acting CEO
You may also be interested in...
The drugstore chain promotes 29-year company veteran Gregory D. Wasson to CEO and a director effective Feb. 1. Wasson started out as a Walgreen pharmacy intern in 1980, eventually becoming president and chief operating officer in 2007, the Deerfield, Ill.-based company says Jan. 26. The CEO search committee praises Wasson's "breadth and depth of industry experience" in consumer marketing and retail operations. The new head will preside over a period in which Walgreens pledged to refocus on its core businesses and cut $1 billion from capital spending in the next three years. Former CEO Jeffrey A. Rein left the company in October 2008 after Walgreens' bid to acquire Longs Drug Stores failed (1"The Tan Sheet" Oct. 13, 2008, In Brief)
CtW Investment Group urges Longs Drug Stores Corp., which CVS recently moved to purchase, to disclose the full value of its real estate portfolio through an independent third-party appraisal so Longs' shareholders can "make a fully informed decision" about CVS' offer (1"The Tan Sheet" Aug. 18, 2008, p. 19). Meanwhile, Longs' board has declined to consider a competing offer from Walgreens. CtW believes CVS' tender offer "undervalues the company's real estate assets" by between 18 and 26 percent, according to a Sept. 2 letter to Longs. The group says it is "disturbed by the news that Longs entered into a previously undisclosed agreement with CVS/Caremark not to reveal the value of its real estate portfolio.
The European Medicines Agency says that Shionogi’s novel antibiotic, Fetcroja, should be approved for use across Europe but that Lilly's migraine drug, Emgality, should not be authorized for the extended indication of episodic cluster headache.