Drug store shopping

Longs Drug Stores Corp recommended that its shareholders accept a $2.54 billion, or $71.50 per share, takeover offer from CVS Caremark Corp after holding unsuccessful merger talks with Walgreen Co.

In an SEC filing, Longs said it had held talks with an unnamed suitor that had offered $70 per share, but negotiations faltered over concerns about antitrust hurdles. A source familiar with the situation said that suitor had been Walgreen.

Despite the recent articles in the press about the dearth of tech IPOs, PEHub says it has nothing to do with tech itself, or the usual culprits of onerous regulation and the difficulty of getting analyst coverage. Instead, tech IPOs are just suffering along with everyone else amid the IPO market worst slowdown in years.

The New York Times’ Deal Book wonders why the potential acquirers in hostile tech takeovers seem to pursue their quarry so half heartedly, pointing to Electronic Arts allowing its tender offer for Take Two Interactive expire tonight, and Microsoft’s “wishy washy” pursuit of Yahoo.

OTHER DEALS OF THE DAY:

** Brinker International Inc said it agreed to sell a majority interest in restaurant chain Romano’s Macaroni Grill to an affiliate of private equity firm Golden Gate Capital for $131.5 million in cash.

** Mahindra & Mahindra Ltd India’s top tractor maker, said it would take a 51 percent stake in a joint venture with a Chinese firm and the venture would acquire the latter’s tractor operations for $50 million.

** BASF put more of its plastics business up for sale as the world’s biggest chemicals group faces a looming petrochemicals supply glut in the Middle East and rising feedstock prices.