Blair Nicholas Featured in Marketwatch Article About Longs Drug Stores' Proposed Sale to CVS Caremark Corp.
September 2, 2008Partner Blair Nicholas was featured in a MarketWatch article covering the Longs Drug Store chain’s proposed $2.9 billion sale to CVS Caremark Corp., and the resulting class action lawsuits brought by pension funds compelling the company to reveal more information to bidders. The suit, as Mr. Nicholas states, recognizes that the chain’s real estate is the ‘crown jewel’ of its holdings, and that these holdings were undervalued during the due diligence and bidding process.
BLB&G’s action on behalf of Louisiana Municipal Police Employees’ Retirement System and other Longs shareholders commenced on August 22, 2008, alleging that Longs’ agreement to be acquired by CVS Caremark for approximately $2.9 billion via tender offer might be greatly underestimating the true value of the company, and that the agreement itself contains terms that create several barriers preventing Longs shareholders from receiving full value for their shares. BLB&G negotiated and obtained significant additional disclosures from the defendants concerning the valuation of Longs’ real estate holdings. The Court granted final approval of the settlement on March 19, 2009.
External Link: "Longs to Give Shareholders Closer Look at CVS Deal," by Matt Andrejczak, Marketwatch (link will open in a new window)