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CVS Buys Longs Drug Stores

Drug store chain CVS Caremark Corp., looking to build its West Coast presence, said Tuesday it would buy Longs Drug Stores Corp. in a deal valued at $2.7 billion.

The $71.50 per-share cash offer, announced after the end of trading Tuesday, was a 32 percent premium over Walnut Creek, Calif.-based Longs' closing price of $54.04.

Longs' shares soared 30 percent, or $16.21, to $70.25 in after-hours trading.

Including the assumption of the chain's roughly $200 million in debt, the deal is valued at about $2.9 billion.

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