Report: CVS CEO Expects to Close Longs Deal
New York City CVS Caremark chief executive Tom Ryan expects enough Longs Drug Stores shareholders will accept CVS’ $2.9 billion bid despite some shareholder pressure to increase the deal price.
Speaking at an investor conference Thursday, Ryan said he believes the deal will get the necessary two-thirds shareholder approval, according to the Associated Press. CVS’ tender offer expires Sept. 15, although Ryan noted it can be extended for up to a year. He also said the Longs stores are more valuable to CVS than most other retailers, and not many banks and retailers are looking for sites that size.
Despite the 32% premium CVS is offering to pay for the shares, hedge funds and union-sponsored pension funds are skeptical, and fear that CVS is low-balling the value of Longs real estate assets in California, Hawaii and Nevada.
Bon-Ton Stores announces September Goodwill Sale
YORK, Pa. The Bon-Ton Stores announced its semi-annual Goodwill Sale, which will take place between Sept. 10 and Sept. 22.
Customers who donate clean, gently-used clothing and home textiles at participating locations will receive 20% off coupons toward the purchase of new fall merchandise, including apparel and cosmetics. One coupon is given per donated item. The donations will be sold at Goodwill Industries retail stores, where the revenue generates job training programs and career services for local communities.
In spring 2008, Bon-Ton’s semi-annual Goodwill Sale generated nearly 3.3 million pounds of donated clothing and textiles, which in turn earned an estimated $2.3 million in revenues for Goodwill.
“This semi-annual event is a wonderful benefit to our customers. Our customers can donate their items to be re-sold for a great cause while receiving a substantial discount on new fall fashions,” commented Bon-Ton Stores president and ceo Bud Bergren. “The Goodwill Sale exemplifies our commitment to the communities in which we operate.”
“Bon-Ton is a valuable partner,” said Jim Gibbons, president and ceo of Goodwill Industries International. “By donating to Goodwill, Bon-Ton shoppers are helping people in their local community find and keep good jobs.”
Staples 2Q sales up 18%
FRAMINGHAM, Mass. Staples reported that total company sales for the second quarter increased 18% to $5.1 billion compared to the second quarter of 2007. Net income declined 16% year over year to $150 million, and earnings per share, on a diluted basis, decreased 16% 21 cents, from the 25 cents.
“I am proud of our team for continuing to manage our business carefully during challenging economic times,” said Ron Sargent, Staples’ chairman and ceo. “We are optimistic about the future for each of our three businesses. We’re excited about the opportunity to drive immediate shareholder value by integrating the Corporate Express acquisition into our North American Delivery business, we’re working hard to improve store productivity in North American Retail, and we’re taking the right steps to build on our foundation for long term growth in International markets.”