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CtW Investment denies CVS Caremark claims
By Lisa Kerner
Charlotte, N.C., Oct. 3 - CtW Investment Group said it will address during the week of Oct. 6 inaccuracies in CVS Caremark Corp.'s Oct. 2 statement accusing CtW of making false or misleading statements concerning the antitrust risk presented by Walgreen Co.'s merger proposal.
According to CVS Caremark, the misleading remarks were made in CtW's Sept. 29 letter to Longs Drug Stores, Inc.
CtW categorically rejected CVS Caremark's "unsubstantiated claims" in a statement released on Friday.
In its letter to Longs, CtW questioned the company's decision not to negotiate with Walgreen.
CtW, a Longs shareholder, said it was "perplexed" by the Longs board of directors' refusal to acknowledge other potential acquirers, including but not limited to Walgreen, willing to offer shareholders a higher price than $71.50 per share.
According to CtW's letter, the board failed to provide evidence to support its claims that a merger of Longs and Walgreen faces a possible lengthy regulatory review process that could delay closing by as much as one year.
It was previously reported that the Federal Trade Commission asked for information related to Walgreen's unsolicited, non-binding expression of interest to acquire Longs.
The information is regarding markets that had not been examined in the FTC's previous review of the proposed Longs/CVS transaction. Those markets include Longs' operations in Hawaii as well as its mail-order business, a prior Longs news release said.
Long's rejected Walgreen's proposed $75.00-per-share offer and is recommending that its stockholders tender their shares in the offer by CVS Caremark, which agreed to acquire the Walnut Creek, Calif., drugstore chain for $2.9 billion, including debt, or $71.50 per share.
CVS Caremark, a Woonsocket, R.I., drugstore chain, extended its tender offer for Longs to midnight ET on Oct. 15 on news of Walgreen's offer.
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