Big Bets

" If you're just joining us a busy morning with the Lehman news chatting with hedge fund manager bill Lakshmanan pershing square. Andrea we're beating our guest host this morning I'm. We're talking about something beyond women and those are the best you've made so far this year the last couple years that if they have gone well what is sticking with what you changing."

" A check I'm very rarely like to make stock recommendations but I won't close -- conditional on uninteresting opportunity. Longs drugs. Longs drugs is trading at a nickel above a cash tender offer. That. CBS is holding open to acquire the company. From the under the terms of the deal the tender offer has to remain open until August of 2009. That or did -- two thirds. Vogt the two thirds tender from the people who who owns stock the company can continue to pay a fourteen cent dividend. You're getting paid to wait now we bought a stake in longs drugs because of our view. That this was accompanied -- into the strategic life. It had an incredible market position in. California Hawaii and it -- PBM that was undervalued. Had a big opportunity to expand margins and was a asset that we thought CVS Walgreens. And Wal-Mart others. We very interest in acquiring brand I'm actually was storing paper today about. Wal-Mart having this compete with Tesco and California. -- Small store concept. Again I think her likely arsenal that's never happened before while we are buying it. Whom we wake up 1 morning we filed a thirteen D and we later CBS and us the deal -- company. We learn from the tender offer materials coming was never shopped. Walgreens expressed or its party eight which everyone believes it will prince expressed interest in acquiring the company. Let's have your share never got due diligence information do their work. I didn't you know took a little longer as you would like sealed with a phone call CBS CBS and it's and 150 initial the company part of the reason might you what they rushed to sell the companies we file -- A lot of management teams and boards don't like to look like they were pushed into something. By shareholder activism so there's no reason to Russian to a sale this is the ideal competitive auction for the Ford did something. A quite -- and their lawyers -- way to structure the deal I don't have ever seen a tender offer which has -- kept open for a year. If you pay 7155. Penny and nickel. For an eleven month call options. Okay minus the fourteen cents a dividends are going to get an -- three more dividends and -- you're going to get. We are Blackstone. We're working very hard to do the work that. Probably should have been done in terms of running an auction. We're getting some traction and you downside seven and fifty plus dividends on. I don't part of existing treaty justices at 52 billion dollar company and -- to a half billion dollars that could. Write a check for the treasury and we think the values here the -- to dies along the thinker in the high two point nine billion that this of the price a -- They're getting the retailer and the TVM for for. So and we can dice -- its in its highest 995. Pals -- share your downs as a -- but it didn't that's the best opportunity right now are there are no outs in agreement other material adverse change particular. Until -- and we think in front business. Not the drug business all the effects longs in particular there but I think it's a very very good restore healthy aging all right."