9:22 AM Wed, Sep 10, 2008 | Permalink
By Business staff  Email this author | Email this entry |
Longs Drug Stores Corp. said this morning that it's agreed in principle to settle lawsuits with plaintiffs related to the retailer's planned acquisition by CVS Caremark Corp for $2.7 billion.
Under the settlement, the claims by the purported class of shareholders filed in California will be dismissed, Longs Drug said.
Longs Drug, based in Walnut Creek, California, recommended on Aug. 18 that shareholders approve CVS's purchase of the company, even as activist investor Bill Ackman hired a firm to explore getting a higher price. Advisory Research Inc., which owned a 9.2 percent stake in Longs Drug as of Aug. 15, has asked for information about the value of the retailer's real estate.
The bid by Woonsocket-based CVS (CVS:NYSE) is valued at $71.50 a share.
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