Investors question CVS buyout of Longs
8:32 AM Fri, Sep 05, 2008 | Permalink
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Some Longs shareholders said they'll oppose CVS Caremark Corp.'s $2.7 billion buyout of the drug srtore chain if Longs doesn't tell them more about the value of its real estate. On Aug. 12, CVS Caremark agreed to pay $71.50 per share for Longs, gaining more than 500 stores and expanding its presence on the West Coast. CVS valued Longs' real estate at about $1 billion, citing the difficult real estate market in California, where most of Longs stores are located. But CtW Investment Group said that price is too low, by as much as $260 million, and two major Longs shareholders say they want to know more about how the real estate and leases were valued. At an investor conference Thursday, CVS Chief Executive Tom Ryan said he believes the deal will get the necessary two-thirds shareholder approval. 
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