Pershing Want Longs to Hold Out for Higher Bid

August 17th, 2008
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Bill Ackman's Pershing Square Capital, which owns a 8.8% stake in Longs Drug Stores, thinks that the company should hold out for a higher offer from either CVS or Walgreen. Longs announced this week that it would be acquired by CVS Caremark.

Mr. Ackman believes that the deal between the two companies was accelerated by his hedge fund's disclosure that they had hired lawyers to consider a deal between Longs and CVS or Longs and Walgreen. However, others have said that the merger between the two had already been far along by the time Pershing Square made its disclosure. Longs and CVS Caremark believe that the premium on the bid and cash offer will help investors agree to the merger.
For Detailed Investor Profiles on these Investors, click below:
Pershing Square Capital Management
Related People: Nicholas Botta; Roy J. Katzovicz; Scott Ferguson*; William 'Bill' Ackman
Related Entities: Leucadia Corporation (NYSE: LUK); Pershing Square Capital; Pershing Square IV; Pershing Square LP

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