Will Safeway Buy Longs?
By George Anderson
Unhappy stockholders are pushing Longs Drug Stores to sell and a likely candidate to purchase the chain may be Safeway, according to a Business Week report.
Ariel Capital Management owns 12% of Longs shares. The firm’s Franklin Morton told the magazine, “For years, management has promised to fix what’s wrong, but we’re still waiting.”
According to Mr. Morton and others, the drug store chain has not performed as well as it should because of management failures.
Safeway reportedly made a bid for Longs two years ago only to have it turned down.
Moderator’s Comment: What are your thoughts on Safeway
possibly purchasing Longs?
With all the problems Safeway has had with its supermarket
acquisitions, perhaps it thinks it will fare better outside the channel.
Here is our free and unsolicited advice to Safeway: Take
care of your own problems first before taking on someone else’s. [George
Anderson – Moderator]