Ackman has taken a large position in Longs Drug Stores (LDG)
Based upon the Issuer’s quarterly report on Form 10-Q for the quarterly period ended May 1, 2008, there were 35,788,396 shares of Common Stock outstanding as of May 29, 2008. Based on the foregoing, the 3,137,659 shares (the “Subject Shares”) of Common Stock beneficially owned by the Reporting Persons represented approximately 8.8% of the shares of Common Stock issued and outstanding as of such date.
In addition to the Common Stock beneficially held by the Reporting Persons, on July 31, 2008 and August 4, 2008, the Reporting Persons entered into Swaps for Pershing Square, L.P. (the “PSLP Swaps”) and Pershing Square International, Ltd ( the “PSIL Swaps”). The Swaps constitute economic exposure to approximately 6.6% notional shares of Common Stock in the aggregate, have reference prices ranging from $46.56 to $48.56 and expire on January 29, 2010 and July 30, 2010, respectfully.
Under the terms of these Swaps (i) the applicable Pershing Square Fund will be obligated to pay to the counterparty any negative price performance of the notional number of shares of Common Stock subject to the applicable Swap as of the expiration date of such Swap, plus interest, and (ii) the counterparty will be obligated to pay to the applicable Pershing Square Fund any positive price performance of the notional number of shares of Common Stock subject to the applicable Swap as of the expiration date of the Swaps. With regard to the PSIL Swaps, any dividends received by the counterparty on such notional shares of Common Stock will be paid to Pershing Square International, Ltd. during the term of the PSIL Swap. With regard to the PSLP Swaps, any dividends received by the counterparty on such notional shares of Common Stock during the term of the PSLP Swaps will be paid to Pershing Square, L.P. at maturity. All balances will be cash settled at the expiration date of the Swaps. The Pershing Square Funds’ counterparty for the Swaps includes entities related to UBS and Citibank.
Disclosure (“none” means no position):None
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One reply on “Bill Ackman Buys Longs Drug Shares”
Good Job! 🙂