The Wall Street Journal has an article about Walgreen made an offer for Longs Drug Stores. CVS has previously made an offer to buy the Longs Drug Store chain. This offer was accepted and the deal was nearly completed.
NEW YORK -- Walgreen Co. made an offer late Friday to buy Longs Drug Stores Corp. for $2.8 billion, hoping to unseat a rival offer from CVS Caremark Corp. that Longs had already accepted.
Walgreens said it would pay $75 a share in cash to buy the California-based Longs, besting CVS's price of $71.50 per share, ...
Walgreen made this offer to force CVS to pay a higher price. This may or may not happen. The cost of this move is limited for Walgreeen. The more money CVS pays the less they have for remodeling and competing.
CVS may have to match the $75 a share offer. There is little possibility that Walgreen actually thought their offer could, would or will go through.
This move is intended to slow their fiercest direct competitor. Both Walgreen and CVS are in a battle against Walmart, Target, COSTCO, Kroger etc.