Walgreens withdraws bid for Longs

DEERFIELD, Ill. Walgreens has withdrawn its proposal to acquire all of the outstanding shares of Longs Drug Stores for $75 per share in cash.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.

“While we believe we made a compelling proposal for Longs, we do not believe it would be in the best interests of Walgreens shareholders, customers or employees to allow this situation to remain unresolved for an extended period of time,” said chairman and ceo Jeffrey A. Rein. “Walgreens has a strong balance sheet and robust cash flow. We will continue to focus on strategic initiatives that will maximize value for our shareholders.”

In the letter sent to the board of directors of Longs, Rein wrote: "We have carefully considered your Sept. 23 response ... [and] we continue to strongly believe that our proposal to acquire 100% of Longs Drug Stores at a price of $75 per share was a compelling proposal and in the best interests of your shareholders as well as ours.

"However, in light of your repeated refusal to accept our invitation to engage in a constructive dialogue that could lead to a mutually-beneficial transaction, and the substantial deterioration in the national economic outlook over the past few weeks, we do not believe it would be in the best interests of the shareholders, customers, or employees of either Walgreens or Longs to allow this situation to remain unresolved for an extended period of time. Accordingly, we have determined to accept the finality of your prior rejections of our Sept. 12 proposal and withdraw our proposal effective immediately."