Revco D S Inc

Woonsocket, R.I.-based CVS Corp., a leading East Coast drugstore chain, is branching into the Midwest and South with the $2.8-billion takeover of Revco DS Inc. of Twinsburg, Ohio. By combining, the drugstores hope to gain more bargaining power by offering insurers a longer list of potential patients. Some analysts said they did not expect antitrust issues to be a major obstacle. The combined companies would have 4,000 outlets and revenue this year of about $13 billion.

Revco to Sell, Close 322 Drugstores: The company said it will sell 272 drugstores acquired from Hook-SupeRx of Cincinnati and close about 50 of its remaining 2,130 stores. Revco President D. Dwayne Hoven said Revco D.S. Inc. of Twinsburg, Ohio, will sell the 219-store Brooks Pharmacy chain in New England, 31 Hook-SupeRx stores in Michigan, 16 Hook-SupeRx stores in the Chicago area and 6 deep-discount stores in the South.

Revco D.S. Inc., one of the country's biggest drugstore chains, began a $330-million hostile takeover bid Monday for Big B Inc., a Southern competitor. Meanwhile, two smaller retailers announced a friendly merger. ShopKo Stores Inc., a Green Bay, Wis.-based discount merchandiser, and Phar-Mor Inc., a drug chain based in Youngstown, Ohio, said they will combine under a new holding company. The moves underscore the increasingly competitive environment in drug retailing.

Revco Seeks to Quash Appeals: Revco D.S. Inc. said it had filed a request in U.S. Bankruptcy Court seeking the withdrawal of all appeals of its reorganization plan. If the request is granted by Judge Harold White, the Twinsburg, Ohio, drugstore chain could exit Chapter 11 protection by the end of May, the company said in a news release.

Revco D. S. Inc., a giant drugstore chain, has filed for bankruptcy protection, a month after missing a $46-million interest payment to bondholders, officials disclosed Thursday. Boake A. Sells, chairman and chief executive, said the stage was set for the reorganization filing when Revco failed to pay the interest on $400 million in "junk bonds" on June 15. Bondholders were demanding payment of the principal as well as the interest. Revco issued the bonds to finance its $1.

Rite Aid Corp. said Thursday that it agreed to buy Revco D.S. Inc. in a $1.8-billion cash and stock deal that will create the nation's largest drugstore chain and a leader in the fast-growing area of managed prescription benefits. Rite Aid Chairman Martin Grass said that although the deal will create a drugstore colossus with $11 billion in annual revenue, the main impetus for the acquisition was to compete more effectively in the managed prescription benefits arena.

Rite Aid Corp. on Wednesday withdrew its $1.8-billion offer to buy Revco DS Inc. following government claims that a combination of the nation's top drugstore chains would dominate the business in the East and Midwest. Rite Aid Chairman and Chief Executive Martin Grass said the deal's expiration date of next Monday makes it impossible for the company to fight the allegations made by the Federal Trade Commission.

The Federal Trade Commission voted Wednesday to file a lawsuit to block the merger of the nation's two largest drugstore chains. Commissioners decided on a 5-0 vote that Rite Aid Corp.'s planned $1.8-billion purchase of Revco D.S. Inc. would lead to higher prices. "Rite Aid-Revco would have significantly more pharmacy locations than its closest competition and would have the ability to increase prices and harm consumers," said George Cary, deputy director of the FTC's Bureau of Competition.

FTC, States to Challenge Rite Aid's Revco Purchase: The Federal Trade Commission staff and several states are preparing an antitrust lawsuit to block Rite Aid Corp.'s proposed $1.8-billion purchase of Revco Inc., its biggest competitor, officials said.

Rite Aid Begins $1.8-Billion Offer for Revco: The drugstore chain began its offer to swallow rival Revco D.S. Inc. in a cash-and-stock transaction. According to the offer, which expires Jan. 2, Rite Aid would pay $27.50 a share for at least 50.1% of the roughly 67 million shares outstanding. The remainder of the purchase price would then be paid in Rite Aid stock. Camp Hill, Pa.-based Rite Aid is the nation's No. 1 drugstore chain in number of stores; Revco, of Twinsburg, Ohio, is No. 2.

Rite Aid Corp. said Thursday that it agreed to buy Revco D.S. Inc. in a $1.8-billion cash and stock deal that will create the nation's largest drugstore chain and a leader in the fast-growing area of managed prescription benefits. Rite Aid Chairman Martin Grass said that although the deal will create a drugstore colossus with $11 billion in annual revenue, the main impetus for the acquisition was to compete more effectively in the managed prescription benefits arena.