0001377739-14-000052.txt : 20141215 0001377739-14-000052.hdr.sgml : 20141215 20141215164057 ACCESSION NUMBER: 0001377739-14-000052 CONFORMED SUBMISSION TYPE: PX14A6G PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20141215 DATE AS OF CHANGE: 20141215 EFFECTIVENESS DATE: 20141215 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: WALGREEN CO CENTRAL INDEX KEY: 0000104207 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-DRUG STORES AND PROPRIETARY STORES [5912] IRS NUMBER: 361924025 STATE OF INCORPORATION: IL FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: PX14A6G SEC ACT: 1934 Act SEC FILE NUMBER: 001-00604 FILM NUMBER: 141286948 BUSINESS ADDRESS: STREET 1: 108 WILMOT RD CITY: DEERFIELD STATE: IL ZIP: 60015 BUSINESS PHONE: 8479402500 MAIL ADDRESS: STREET 1: 108 WILMOT RD CITY: DEERFIELD STATE: IL ZIP: 60015 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: CtW Investment Group CENTRAL INDEX KEY: 0001377739 IRS NUMBER: 203688367 FILING VALUES: FORM TYPE: PX14A6G BUSINESS ADDRESS: STREET 1: 1900 L STREET NW STREET 2: SUITE 900 CITY: WASHINGTON STATE: DC ZIP: 20036 BUSINESS PHONE: 202 721 6060 MAIL ADDRESS: STREET 1: 1900 L STREET NW STREET 2: SUITE 900 CITY: WASHINGTON STATE: DC ZIP: 20036 PX14A6G 1 skinnerltr.txt TWEETSTHREE U.S. Securities and Exchange Commission Washington, DC 20549 NOTICE OF EXEMPT SOLICITATION 1. Name of the Registrant: WALGREENS ALLIANCE BOOTS, INC. ___________________________________________________________________________ 2. Name of the person relying on exemption: CTW INVESTMENT GROUP ___________________________________________________________________________ 3. Address of the person relying on exemption: 1900 L STREET, NW, SUITE 900 WASHINGTON, DC 20036 ___________________________________________________________________________ [CtW Investment Group has posted the two following tweets.] Mia Taylor @shoeinabox Dec 12 Dissident shareholders resist Boots' 9 billion pounds plan to merge with US partner Walgreens: CtW Investment Group,... http://dailym.ai/1IKLjHt [The link is to an article by Rupert Steiner of the Daily Mail Online dated Dec. 12, 2014 entitled "Dissident shareholders resist Boots' 9 billion pounds plan to merge with US partner Walgreens."] [CtW Investment Group logo] CtW Investment Group @CtWInvGrp Dec 12 #WAG must delay approval of Alliance Boots acquisition after CEO's departure changes core premise of merger http://ctwinvestmentgroup.com/wp- ontent/uploads/2014/12/Dec-11_Skinner.pdf . . . #corpgov [The link is to the letter from CtW Investment Group to James E. Skinner of Walgreen reprinted below.] CtW Investment Group December 11, 2014 James Skinner Chairman of the Walgreen Co. Board of Directors Walgreen Co. 108 Wilmot Road Deerfield, IL 60015 Dear Mr. Skinner: In light of yesterday's abrupt change to the leadership of the proposed Walgreens Boots Alliance, WE CALL FOR THE POSTPONEMENT OF THE SPECIAL MEETING SET FOR DECEMBER 29 and the disclosure of the full succession plan to replace CEO Greg Wasson. The announcement of CEO Wasson's pending departure has further exacerbated the conflicts of interest present at Walgreen Co. Specifically, it raises the question of who is the true acquirer in a deal where Stefano Pessina is set to run Walgreen while also receiving a handsome premium for his share of Alliance Boots GmbH - without Walgreen shareholders having had a vote so far. WE THEREFORE ALSO ASK THAT YOU PROVIDE OUTSIDE SHAREHOLDERS WITH AN INDEPENDENT VOTE on whether to issue the shares necessary to complete the Alliance Boots transaction. Without any further clarity or investor protections, yesterday's dramatic development only reinforces our view that the full acquisition of Alliance Boots is unnecessary, risky and overvalued and should be opposed by shareholders. The CtW Investment Group works with union-sponsored pension funds in order to enhance long-term shareholder value through active ownership. These funds have over $250 billion in assets under management and are substantial Walgreen shareholders. Yesterday's announcement is a game-changer impacting the core premises on which this merger was proposed. Although Walgreen shareholders are paying a premium to acquire Alliance Boots, it seems now more than ever the case that Alliance Boots' owners and management will be the dominant forces in the combined company. Further, while we were promised a smooth transition, aided by two-years of integration, shareholders are now expected to vote on the costly and risky acquisition of Alliance Boots without knowing who will lead the challenging integration of these two companies and achieve the speculative synergies of the second step of this transaction. This is particularly troubling coming, as it does, on the heels of the sudden departure of former CFO Wade Miquelon, and the controversy over the downgrading of the combined company's FY2016 earnings. A postponement of the special meeting is essential if shareholders are to be able to evaluate the impacts of this sudden upheaval and its consequences for the leadership and control of the company's direction. The latest events also throw into sharp relief Mr. Pessina's conflicts of interest, as a board member and shareholder on both sides of the second step of the transaction. To ensure a fair and transparent shareholder vote on the issuance of shares to complete the acquisition of Alliance Boots by Walgreen (Voting Item 2), we request that the vote be contingent not only on an affirmative majority of the votes cast, but also on an affirmative majority of unaffiliated shares cast. The latter is to exclude the approximately 8% of the outstanding shares of the company held 1900 L Street, NW Suite 900 Washington, DC 20036 202-721-6060 www.ctwinvestmentgroup.com by Mr. Pessina, KKR & Co. and their investors. The urgency of this request stems from the following concerns: - The influence exerted by Mr. Pessina and KKR on Walgreen's internal processes after the first step of this transaction, now evidenced by Mr. Pessina's apparent takeover; - The substantial consideration both Mr. Pessina and KKR stand to gain by shareholder approval of the acquisition; and - The lack of information about what Mr. Wasson's departure could mean for any combined company, on top of inadequate disclosure regarding the decision-making process for this transaction. Independent shareholders of this company should be heard without dilution from insiders or affiliated shareholders. To date, independent, long-term shareholders have not had significant input into the transaction, even as Mr. Pessina and KKR have had ample opportunities to express their views, shape the negotiation of the deal and to influence Walgreen's decision to go ahead with the transaction. If you are confident that the outcome of this transaction will create value for all shareholders, you should not hesitate to implement our requests and provide additional information that will ensure proper consideration by all shareholders about the future of the company. Sincerely, /s/ Dieter Waizenegger Executive Director CC: Dominic Murphy, Stefano Pessina