U.S. drugstore operator Walgreen is to buy rival Duane Reed for $618 million from private equity firm Oak Hill Capital Partners, giving the company the market lead in New York. The acquisition brings the company 257 new stores in the city and has prompted analysts to think that struggling chain Rite Aid might make an attractive target for Walgreen rival CVS Caremark as it looks to catch up.
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In other media:
Beijing’s sovereign wealth fund, China Investment Corp, is investing $1.5 billion with three private equity secondary specialists – firms that buy positions in buyout funds from other investors – the FT reported. CIC will put $500 million with each of Lexington Partners, Goldman Sachs and Pantheon Ventures in special accounts that will be kept separate from the firms’ main funds.
Leading shareholders in Telecom Italia are discussing among themselves the possibility of merging with Telefonica of Spain, the FT writes. The discussions are said to be informal and preliminary but involve Telecom Italia’s three biggest Italian shareholders – Mediobanca, Intesa Sanpaolo and Generali.