Walgreens (WAG) on Friday evening, offered $3 billion or $75 per share, including the assumption of roughly $200 million in debt, for all the shares of Longs Drugs Stores (LDG). This is an all cash offer.
The offer counters a $71.50 bid that CVS (CVS) made for Longs Drug Stores (LDG) on August 12th of this year.
That deal faced opposition from top Longs (LDG) shareholders, including Advisory Research Inc, which owns 9.2% of Longs and Pershing Square Capital Management, who’ve stated that the CVS (CVS) bid undervalues Longs (LDG) real estate holdings and claiming that they won’t tender their shares to CVS (CVS). Longs (LDG) owns more than 490 stores in California, Hawaii, and Nevada.
Walgreens’ (WAG) bid ups the ante and could possibly lead to an escalated bidding war for Long’s Drug Stores (LDG). The CEO of Walgreen, Jeffrey Rein in a letter to Longs Drug Stores’ (LDG) board of directors, said that
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