DENVER, Aug. 13, 2008 (PRIME NEWSWIRE) -- Advertising Material -- The Shuman Law Firm today announced that it is investigating the proposed acquisition of Longs Drugs Stores Corporation ("Longs") (NYSE:LDG) by CVS Caremark Corporation ("CVS") (NYSE:CVS).
If you currently own Longs common stock and would like a free consultation concerning your rights and interests, please contact Kip Shuman, Esq. or Rusty Glenn, Esq. toll-free at 866-974-8626 or email Mr. Shuman at kip@shumanlawfirm.com or Mr. Glenn at rusty@shumanlawfirm.com.
On August 12, 2008, Longs announced that it had entered into a definitive acquisition agreement with CVS. Under the terms of the agreement, Longs' shareholders would receive $71.50 per share in cash or approximately $2.9 billion, including assumption of outstanding debt. The merger is subject to several conditions including that two thirds of Longs' common stock be tendered back to the company through a tender offer as well as certain other customary closing conditions.
Just one week earlier, on August 5, 2008, hedge fund Pershing Square Capital announced that it had built up a large ownership stake in Longs, and that it may engage Longs in strategic discussions. This announcement effectively made Longs susceptible to offers from potentially interested bidders. The Longs' Board entered into the proposed buyout just one week after Pershing's announcement, seemingly placing the interests of CVS before those of Longs' shareholders and eschewing any reasonable attempt to maximize shareholder value through an open bidding process, possibly breaching their fiduciary duties to Longs shareholders in the process.
The Shuman Law Firm has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud. The Shuman Law Firm represents investors throughout the nation, concentrating its practice in securities class actions. If you wish to obtain additional information please contact us at the number listed below or visit www.shumanlawfirm.com.
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