Longs not to consider Walgreens bid

WALNUT CREEK, Calif. Longs Drug Stores announced that its board of directors, after careful consultation with its legal and financial advisors, determined not to furnish information to, nor have discussions and negotiations with, Walgreens which had sent Longs an unsolicited, non-binding expression of interest announced on Sept. 12.

Longs said that it decided not to enter into talks with Walgreens because it has not presented a clear roadmap to completion and does not provide comparable certainty of consummation to the CVS Caremark transaction, among other factors.

Walgreens has 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.