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Longs continues to urge shareholders to tender shares in CVS Caremark offer despite Walgreen's interest
By Lisa Kerner
Charlotte, N.C., Sept. 23 - Longs Drug Stores Corp. reiterated its decision not to furnish information to or enter into discussions with Walgreen Co. in response to Walgreen's announcement it planned to take its $75.00-per-share offer for Longs directly to the company's shareholders.
According to Longs, Walgreen's Sept. 22 letter made no changes to its unsolicited, non-binding expression of interest for Longs.
Longs' board of directors said Walgreen is not willing to accept inherent regulatory risks in a potential transaction and is also not willing to compensate Longs stockholders for delays in closing a transaction, a Longs news release said.
In addition, Walgreen failed to present a "clear roadmap" for completing a transaction with Longs, the release said.
Walgreen, in its letter, had asked Longs for the opportunity to complete customary due diligence as soon as possible.
According to Walgreen, the combination of Longs and Walgreen would receive all required regulatory approvals "in a reasonable period of time."
Longs' board continues to recommend its stockholders tender their shares in the offer by CVS Caremark Corp., which agreed to acquire the Walnut Creek, Calif., drugstore chain for $2.9 billion, including debt, or $71.50 per share.
It was previously reported that the proposal from Walgreen, a Deerfield, Ill., drugstore operator, was valued at approximately $3 billion, including the assumption of debt.
CVS Caremark, a Woonsocket, R.I., drugstore chain, extended its tender offer for Longs to midnight ET on Oct. 15 on news of Walgreen's offer.
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