Friday, 26 December 2014
Last updated 2 days ago
Aug 19 2008 | 12:56pm ET
Activist hedge fund Pershing Square Capital Management has hired private equity giant The Blackstone Group to help it fight a proposed drug store tie-up.
Pershing Square, run by William Ackman, has charged Blackstone with helping it drive up the purchase price of Longs Drug Stores Corp., which it owns an 8.8% stake in. Last week, rival CVS Caremark Corp. agreed to pay $2.6 billion for Longs, but the New York hedge fund reportedly believes that Longs’ real-estate holdings make it worth much more.
In addition to its stake in Longs, Pershing Square owns swaps that bring its total economic interest in Longs to 25.8% of shares outstanding.
According to The Wall Street Journal, a real-estate investor approached the hedge fund claiming it could make more by selling the unwanted Longs sites than CVS could, a prospect which would make Longs significantly more valuable. The investor told Pershing Square that it could try to work out a more lucrative bid for Longs from rival chain Walgreen Co.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.