Anyone know why CVS tanked yesterday and today?  Thanks!

With the news that Walgreens is also bidding for Long Drugs. If this
is the case it will be first time Walgreens is going out and buying a
company to expand it's network.

I disagree.

It sounds like Longs will NOT honor the deal from Wags and CVS is
still the top contender for the buy out.  This buyout doesnt seem to
muster much investor confidence however. Possibly too high a buyout
price?

Read the latest headlines from Forbes:

"Longs Drug won't start sale talks with Walgreen"

Mark:  Longs doesn't need to talk to Wags they can take it to the
shareholders, which they will and they will win.  The two largest
entities in possession of Longs have refused the CVS tender offer, as
of earlier this week CVS had managed to secure a measly 10% commitment
from the shareholders.  CVS has great potential but is run by a
corrupt and dishonest group of people they will NOT secure longs
without bumping the tender offer to a fair price.

Your right.

I just read this link

http://www.reuters.com/article/mnaNewsConsumerGoodsAndRetail/idUSN233...

Thanks for the help!

Longs would have to pay CVS 115 million to back out now...

Longs wouldn't back out without a better offer (like the one from
Walgreens).  WAG is offering to pay the $115 million in addition to
the extra $3.50 a share.

Wag is going to clear FTC, they will be BIG in northern CA, but it
wouldn't be uncompetitive.  When they do the price for Long's is gonna
run up to $80-85 before its all said and done.

"CVS Caremark comments on FTC investigation into anti-trust aspects of
Walgreens proposal to acquire Longs, says highly unusual at this stage
In response to the press release issued earlier today by Longs Drug
Stores (LDG) regarding the investigation by the Federal Trade
Commission into the antitrust implications of a possible acquisition
of Longs by Walgreens, CVS Caremark Corporation (CVS) issued the
following statement: "The opening of an FTC investigation into the
anti-competitive aspects of Walgreens' proposed acquisition of Longs,
coupled with such a burdensome request, is highly unusual at this
stage since no Hart-Scott-Rodino filing has yet been made. The related
information request is as extensive as a Hart-Scott-Rodino 'Second
Request' and seeks information on 23 different geographic markets. The
FTC's interest in this transaction is not surprising since Walgreens
has the second largest number of pharmacy counters in Northern
California (Longs has the most) and has announced plans to
aggressively enter Hawaii (where Longs is by far the largest and
strongest pharmacy operator). CVS believes this development
underscores that a Walgreens transaction would entail significant
antitrust-related completion risk, and, at a minimum, would entail a
regulatory review lasting well into 2009. Significantly, Walgreens
previously terminated negotiations with Longs over antitrust concerns
and has not offered to assume that risk for Longs shareholders. In
addition, Walgreens' non-binding expression of interest is subject to
completion of due diligence and lacks committed financing at a highly
uncertain time in the economy and the financial markets. In contrast,
the CVS Caremark transaction has cleared all regulatory hurdles, is
fully financed and is ready to close. We continue to believe that the
CVS Caremark offer is a compelling, certain proposition for Longs
shareholders."

The FTC gave a similar hard first look to the Rite Aid/Eckerd's/Brooks
Deal because it would give them almost 5000 stores (the vast majority
of which would be in 15-20 east coast states).  This was back when WAG
had about 5300 stores in about 45 states, and CVS had about 5500
stores in 41 or 42 states.  Those are rough guesses, trying to
remember what it all looked like 2-3 years ago; the point is that Rite
Aid was expected to dominate the east coast because of the massive
presence it would have there over their competitors, and the FTC gave
a similar hard first request and then cleared it.

Walgreens will not have more than a 35% share in any market were
talking about, there is still grocery, super center, mail order,
independents, and CVS has similarly announced major plans for northern
CA; things will stay competitive.  This extensive request was more to
get it done with sooner, than it was over real anti-trust concerns
(I'm not say they can't fail, but I sincerely doubt it).  When WAG
clears this review, it will be definitive, and the bidding war can
begin.

Finally, when one company is trying to buy another, they will usually
say every negative thing they can  about counter offers to try and get
the deal done; I don't care what any of the CEOs say, its just
propaganda.

Longs will sell for $80-85

(unless CVS really meant it when they said 71.50 was their final
offer, then WAG gets it for $75)