24/7 Wall St.
09-17-2008, 10:50 AM
24/7 Wall St. Daily News
http://www.247wallst.com/images/2008/09/17/longs_logo.gif (http://247wallstreet.typepad.com/.shared/image.html?/photos/uncategorized/2008/09/17/longs_logo.gif)Longs Drug Stores Corporation (NYSE: LDG) is doing something which may seem odd to many, which is essentially a "going with the bird in the hand" strategy. The company has just announced that its Board of Directors has determined not to have discussions nor to furnish information to Walgreens (NYSE: WAG). This was after consultation with its legal and financial advisors. Walgreens had sent Longs an expression of interest announced on September 12, 2008.
What is going on here is that Longs has decided to proceed with itsmerger offer from CVS Caremark (NYSE: CVS). There are many reasonscited for this rejection. Longs cited regulatory concerns, a lack of aroadmap, lack of shareholder compensation over delays, and theexpression of interest being non-binding.
Longs shares are actually down almost 2% at $75.00 in pre-markettrading. Here is the issue at hand. The CVS bid is $71.50 andWalgreens has indicated that it is willing to pay $75.00. There aresome potential problems in regulation and it is believed by many that arival bid would take much longer into 2009 to close.
Now it boils down to one thing: Will Walgreens come back with a higher bid that forces Longs' board of directors to play along?
Jon C. Ogg
September 17, 2008
complete story here... (http://www.247wallst.com/2008/09/longs-merger-pl.html)
http://www.247wallst.com/images/2008/09/17/longs_logo.gif (http://247wallstreet.typepad.com/.shared/image.html?/photos/uncategorized/2008/09/17/longs_logo.gif)Longs Drug Stores Corporation (NYSE: LDG) is doing something which may seem odd to many, which is essentially a "going with the bird in the hand" strategy. The company has just announced that its Board of Directors has determined not to have discussions nor to furnish information to Walgreens (NYSE: WAG). This was after consultation with its legal and financial advisors. Walgreens had sent Longs an expression of interest announced on September 12, 2008.
What is going on here is that Longs has decided to proceed with itsmerger offer from CVS Caremark (NYSE: CVS). There are many reasonscited for this rejection. Longs cited regulatory concerns, a lack of aroadmap, lack of shareholder compensation over delays, and theexpression of interest being non-binding.
Longs shares are actually down almost 2% at $75.00 in pre-markettrading. Here is the issue at hand. The CVS bid is $71.50 andWalgreens has indicated that it is willing to pay $75.00. There aresome potential problems in regulation and it is believed by many that arival bid would take much longer into 2009 to close.
Now it boils down to one thing: Will Walgreens come back with a higher bid that forces Longs' board of directors to play along?
Jon C. Ogg
September 17, 2008
complete story here... (http://www.247wallst.com/2008/09/longs-merger-pl.html)