CVS’ Longs offer questioned
This article was originally published in The Tan Sheet
Executive Summary
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.
You may also be interested in...
Walgreens drops Longs bid
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
CVS Stretches California Footprint, Reaches Hawaii With Longs Buy
CVS/Caremark is gaining a retail pharmacy presence in major new markets in California and other western states through its acquisition of Longs
California Court’s Inaction On TiO2 Prop 65 First Amendment Case Breeds New Lawsuits
The Personal Care Products Council seeks to stem the rising tide of titanium dioxide Proposition 65 lawsuits, requesting that a California court prohibit the state’s Attorney General and private enforcers from filing and/or prosecuting new suits against cosmetics companies failing to warn about potential TiO2 exposure.