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Drugstore.com shareholders challenge Walgreens’ acquisition

BY Michael Johnsen

STEVENSON, Md. — The law firm of Brower Piven on Tuesday announced that a class action lawsuit has commenced in the Delaware Chancery Court on behalf of all shareholders of Drugstore.com, alleging violations of state law by the company’s board of directors relating to the proposed acquisition by Walgreens.

The complaint alleged that Drugstore.com’s board of directors breached their fiduciary duties by failing to maximize shareholder value, among other things.

The complaint further alleged that while the company announced that the $3.80 in cash for each share of stock is a premium of approximately 102% over Drugstore.com’s 30-day average closing stock price — and a premium of approximately 113% over the closing price of Drugstore.com’s common stock on the last trading day prior to the announcement — the proposed transaction price actually represents a small premium to the company’s summer stock high of $3.34 per share (13.8%) and a discount to prior trading prices in the last year. (The stock traded at a high of $3.91 on May 3, 2010.)

Drugstore.com stock was trading at a four-penny premium to the Walgreens offer Wednesday morning, apparently in anticipation of a rival offer or a sweetened pot from Walgreens. However, according to several analysts, that’s not likely to happen. “Walgreens’ offer was for a whopping 113% premium,” wrote Rick Munarriz in a March 28 Motley Fool column, referencing the March 23 Drugstore.com closing price of $1.79. “A higher offer for a company that has missed Wall Street’s profit targets in three of last year’s four quarters seems highly unlikely.”

If consecrated, the Walgreens/Drugstore.com deal will make for an online health retailing powerhouse — Walgreens and Drugstore.com were ranked Nos. 68 and 46, respectively, out of all online retailers in the Internet Retailer’s "Top 500 Guide."

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H.MARK says:
Apr-11-2013 04:30 am

Walgreens is expanding services available at its pharmacies and Take Care Clinics to include additional immunizations; chronic care management; primary care; Medicare wellness visits and member assessments; and health testing. Regards www.trainingtraders.com

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Target focuses on food in Charlotte

BY DSN STAFF

MINNEAPOLIS — Target announced plans to remodel several stores in the Charlotte, N.C., area.

According to the company, the remodeling began March 27 and includes such features as an open-market fresh food layout, complete with a selection of fresh produce, fresh meat and baked goods. The new layout also features reinventions in several other areas throughout the store, including beauty, home, baby and shoes.

The remodeled stores, according to Target, will offer guests approximately 40% more food offerings (on average) than a general merchandise location. “We heard from our guests that they wanted more fresh food options in the convenience of their local Target store,” said Annette Miller, SVP grocery at Target. “Our guests lead busy lives, and with the increased food selection, we’ve made it easy to complete their grocery list or pick up tonight’s dinner during their regular Target shopping trip.”

In addition to the expanded food layout, remodeled stores also include upgraded beauty department displays featuring softer lighting and curved fixtures. The home department has added wider aisles and lower product fixtures, offering easier navigation. The baby department has broadened the visibility between baby gear, supplies and apparel. The shoe department provides better product visibility and has enhanced guest comfort with additional seating and mirrors.

Target stores completing remodels in the Charlotte area in March include:

  • Charlotte Midtown, 900 Metropolitan Ave., Charlotte, N.C.;

  • Charlotte South, 7860 Rea Rd., Charlotte, N.C.;

  • NE Charlotte, 8120 University City Blvd., Charlotte, N.C.; and

  • Charlotte SE, 1900 Matthews Township Pkwy, Matthews, N.C.

Additional stores now under construction for June completion include Pineville, 9531 South Blvd., Charlotte, N.C. Additional stores now under construction for July completion include Huntersville, 9801 Sam Furr Rd., Huntersville, N.C.; and Rock Hill, 1900 Springsteen Rd., Rock Hill, S.C.

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Pet Head provides products to bands for Backstage Artist Lounge

BY Allison Cerra

NEW YORK — A line of products developed for pets by Tigi Bed Head will be the exclusive pet grooming, accessories, toys and apparel company for the Backstage Artist Lounge, which provides famous bands with a variety of sample products during their rock tours.

Pet Head, whose products are pH-adjusted and are paraben-, sulfate-, DEA- and cruelty-free, will travel on tour with famous bands by providing a variety of sample products during their tours.

Pet Head’s lineup includes such products as Dirty Talk shampoo and So Spoiled conditioning cream rinse for dogs.

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