Check out Longs Drugs’ share price now that it’s got a new suitor.

Longs, the drug store chain with a heavy concentration of stores in California, got a surprise offer from Walgreen late on Friday that topped its previous buyout agreement with rival CVS Caremark.
    
Longs shares opened on Monday ahead more than 5 percent to $75.80, slightly above the Walgreen offer of $75 per share and proving that investors believe they can’t lose as the two biggest U.S. pharmacy operators battle over an acquisition.
    
At the very least, analysts say, CVS will have to sweeten its earlier $71.50 per share bid, despite its protestations to the contrary. And that doesn’t even take into account the possibility that Walgreen will become even more aggressive to keep Longs out of its rival’s hands.
    
The Walgreen offer is also lending a helping hand to Longs’ two biggest shareholders, who said on Friday they wouldn’t give up their shares to CVS because the offer price was too low.
    
What’s clear is that even as Wall Street reels from the downfall of Lehman Brothers and a surprise buyout of Merrill Lynch, a deal for purveyors of Tylenol and toothpaste can still capture some investors attention.

Footnote: Lehman has been advising CVS on the Longs deal, along with Deutsche Bank. Curious how quickly CVS can regroup to make a higher offer, if it should choose to do so?

Also in the basket:

Best Buy nabs Napster for $121 million (Reuters)

Target gets naming rights to Minnesota Twins stadium (Reuters)

Reddy Ice suspends dividend, sends sales exec on leave (Reuters)

(Photo: Reuters)

Lehman’s most valuable assets, primarily Neuberger Berman, are still on the block, but becoming less valuable by the hour with the bank having filed for bankruptcy protection. And with Merrill Lynch now heading for the relative safety of Bank of America’s $50 billion embrace, it’s time ask “Who is next and how?” Most attention is squarely focused on insurer AIG and investment bank Morgan Stanley.

AIG’s shares lost a third of their value in pre-market Monday action. Warren Buffett would be a natural candidate for AIG assets, given it’s a business he knows (and part of being a successful oracle is knowing your businesses).

On Sunday AIG is reported by the New York Times to have approached the Fed seeking $40 billion in short-term financing. An investor call is expected later today.
The Fed might be more willing to play a role in getting AIG sorted out as well, if it sensed a systemic risk to another strut of the financial markets.

AIG execs reportedly met top New York state officials including Governor David Paterson and insurance and banking regulators over the weekend, seeking permission to liquidate assets, such as Manhattan real estate, to raise cash.   

Morgan Stanley could be a much tougher sell, if it comes to that. The market for investment banks is not too healthy, to say the least.

Other deals of the day:

* Longs Drug Stores said it will weigh a $75 per share takeover bid by Walgreen, but the drug store chain said for now it still recommends that shareholders accept an earlier tender offer by rival CVS Caremark.

* Chinese state-owned trading firm Sinosteel’s stake in Australian iron ore prospector Midwest Corp has risen to more than 82 percent after a former senior Midwest executive sold a stake, Sinosteel said on Monday.

* Israeli food maker Osem Investments and Swiss parent Nestle signed a deal to buy 51 percent of a unit of Maabarot Products for 248.7 million shekels ($69 million), Osem said.

* Google has bought Korean blogging software developer Tatter and Company, the two companies said.

* Borealis Infrastructure Management, an investment arm of the Ontario Municipal Employees Retirement System, said it has formally commenced its takeover bid for Teranet Income Fund for C$11 per unit.

* The chief executive of Northwest Airlines said he still expects the carrier’s merger with Delta Air Lines to close in the fourth quarter.

You can place a bet on the next victim of the credit crisis by clicking on the graph below, which links to the news prediction website www.hubdub.com.

Which of these banks will be the next victim of the credit crisis?

Lehman Brothers employees carried out boxes of their possessions on Sunday night in New York as bankruptcy became inevitable. View the rough cut video from Reuters. 

After months of trying to sell its rail leasing business, CIT pulled the plug on the auction, saying it no longer needed to do so.

CIT decided to keep its $4.5 billion rail franchise as a result of the progress it had made managing its balance sheet and strengthening its liquidity position, it said. 

“We are very pleased with the progress we have made in securing more than $11 billion in liquidity over the past five months,” CEO Jeffrey Peek said. 

Sources told us last month that the auction had become a bit of a drag. The credit crisis was making it difficult for potential buyers to come up with financing. And GE spoiled the party by putting its own rail car business on the market around the same time, so that the two units were competing for buyers. GE may also have an advantage luring buyers, as it can possibly provide at least some seller financing for its business.

These businesses can be attractive. Returns on investment for rail car leases are often over 15 percent a year and with the price of scrap metal rising, the value of rail cars is also rising.

But in these conditions, finding somebody to pay a premium can be tough.

(Photo credit: Reuters)

Check out Longs Drugs’ share price now that it’s got a new suitor.

Longs, the drug store chain with a heavy concentration of stores in California, got a surprise offer from Walgreen late on Friday that topped its previous buyout agreement with rival CVS Caremark.
    
Longs shares opened on Monday ahead more than 5 percent to $75.80, slightly above the Walgreen offer of $75 per share and proving that investors believe they can’t lose as the two biggest U.S. pharmacy operators battle over an acquisition.
    
At the very least, analysts say, CVS will have to sweeten its earlier $71.50 per share bid, despite its protestations to the contrary. And that doesn’t even take into account the possibility that Walgreen will become even more aggressive to keep Longs out of its rival’s hands.
    
The Walgreen offer is also lending a helping hand to Longs’ two biggest shareholders, who said on Friday they wouldn’t give up their shares to CVS because the offer price was too low.
    
What’s clear is that even as Wall Street reels from the downfall of Lehman Brothers and a surprise buyout of Merrill Lynch, a deal for purveyors of Tylenol and toothpaste can still capture some investors attention.

Footnote: Lehman has been advising CVS on the Longs deal, along with Deutsche Bank. Curious how quickly CVS can regroup to make a higher offer, if it should choose to do so?

Also in the basket:

Best Buy nabs Napster for $121 million (Reuters)

Target gets naming rights to Minnesota Twins stadium (Reuters)

Reddy Ice suspends dividend, sends sales exec on leave (Reuters)

(Photo: Reuters)

Lehman’s most valuable assets, primarily Neuberger Berman, are still on the block, but becoming less valuable by the hour with the bank having filed for bankruptcy protection. And with Merrill Lynch now heading for the relative safety of Bank of America’s $50 billion embrace, it’s time ask “Who is next and how?” Most attention is squarely focused on insurer AIG and investment bank Morgan Stanley.

AIG’s shares lost a third of their value in pre-market Monday action. Warren Buffett would be a natural candidate for AIG assets, given it’s a business he knows (and part of being a successful oracle is knowing your businesses).

On Sunday AIG is reported by the New York Times to have approached the Fed seeking $40 billion in short-term financing. An investor call is expected later today.
The Fed might be more willing to play a role in getting AIG sorted out as well, if it sensed a systemic risk to another strut of the financial markets.

AIG execs reportedly met top New York state officials including Governor David Paterson and insurance and banking regulators over the weekend, seeking permission to liquidate assets, such as Manhattan real estate, to raise cash.   

Morgan Stanley could be a much tougher sell, if it comes to that. The market for investment banks is not too healthy, to say the least.

Other deals of the day:

* Longs Drug Stores said it will weigh a $75 per share takeover bid by Walgreen, but the drug store chain said for now it still recommends that shareholders accept an earlier tender offer by rival CVS Caremark.

* Chinese state-owned trading firm Sinosteel’s stake in Australian iron ore prospector Midwest Corp has risen to more than 82 percent after a former senior Midwest executive sold a stake, Sinosteel said on Monday.

* Israeli food maker Osem Investments and Swiss parent Nestle signed a deal to buy 51 percent of a unit of Maabarot Products for 248.7 million shekels ($69 million), Osem said.

* Google has bought Korean blogging software developer Tatter and Company, the two companies said.

* Borealis Infrastructure Management, an investment arm of the Ontario Municipal Employees Retirement System, said it has formally commenced its takeover bid for Teranet Income Fund for C$11 per unit.

* The chief executive of Northwest Airlines said he still expects the carrier’s merger with Delta Air Lines to close in the fourth quarter.

You can place a bet on the next victim of the credit crisis by clicking on the graph below, which links to the news prediction website www.hubdub.com.

Which of these banks will be the next victim of the credit crisis?