Longs investor now supports CVS deal

CHICAGO Longs Drug Stores' largest shareholder, Advisory Research, announced that in view of Walgreens’ withdrawal of its offer to purchase all of the outstanding shares of Longs Drug Stores and the turmoil in the markets, Advisory Research has determined to tender into the CVS Caremark tender offer all of its clients’ holdings of Longs representing approximately 9.2% of the outstanding Longs’ shares.

Walgreens withdrew its proposal has to acquire all of the outstanding shares of Longs Drug Stores for $75 per share in cash. The offer was originally proposed on Sept. 12 and declined by the board of directors of Longs in favor of the proposed acquisition by CVS/Caremark announced on Aug. 12.

Walgreens had proposed to acquire all of the outstanding shares of Longs Drug Stores for $75 per share in cash for a total purchase price of approximately $3 billion including the assumption of debt. The offer, which is subject to standard regulatory approvals and the completion of due diligence, represents a $3.50 per share premium over the cash purchase price to be paid to Longs shareholders under the proposed acquisition by CVS/Caremark announced on Aug. 12.