-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SeRwbUj6ajBMeIrd5+QNf330xuYPvVaZ33T+M/D+zYM1HfV9f7+69lxFLRuK9bOt fgprPbW0THwsa8WmFYfI3g== 0000902584-08-000190.txt : 20080912 0000902584-08-000190.hdr.sgml : 20080912 20080912141251 ACCESSION NUMBER: 0000902584-08-000190 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20080912 DATE AS OF CHANGE: 20080912 GROUP MEMBERS: ADVISORY RESEARCH ALL CAP FUND, L.P. GROUP MEMBERS: ADVISORY RESEARCH GLOBAL ALL CAP FUND, L.P. GROUP MEMBERS: ADVISORY RESEARCH SMALL CAP EQUITY FUND II, L.P. GROUP MEMBERS: ADVISORY RESEARCH SMALL CAP EQUITY FUND, L.P. GROUP MEMBERS: ADVISORY RESEARCH SMALL MID CAP VALUE FUND II, L.P. GROUP MEMBERS: ADVISORY RESEARCH SMALL MID CAP VALUE FUND, L.P. SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: LONGS DRUG STORES CORP CENTRAL INDEX KEY: 0000764762 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-DRUG STORES AND PROPRIETARY STORES [5912] IRS NUMBER: 680048627 STATE OF INCORPORATION: MD FISCAL YEAR END: 0128 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-37157 FILM NUMBER: 081068952 BUSINESS ADDRESS: STREET 1: 141 NORTH CIVIC DRIVE CITY: WALNUT CREEK STATE: CA ZIP: 94596 BUSINESS PHONE: 925-937-1170 MAIL ADDRESS: STREET 1: 141 NORTH CIVIC DRIVE CITY: WALNUT CREEK STATE: CA ZIP: 94596 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: ADVISORY RESEARCH INC CENTRAL INDEX KEY: 0000902584 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 132831881 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 180 N. STETSON STREET STREET 2: STE 5500 CITY: CHICAGO STATE: IL ZIP: 60601 BUSINESS PHONE: 3125651414 MAIL ADDRESS: STREET 1: 180 N. STETSON STREET STREET 2: SUITE 5780 CITY: CHICAGO STATE: IL ZIP: 60601 SC 13D/A 1 ldg13d.txt SC 13D/A SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------- SCHEDULE 13D (Rule 13d-101) INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a) Under the Securities Exchange Act of 1934 (Amendment No. 1)* Longs Drug Stores Corp. - -------------------------------------------------------------------------------- (Name of Issuer) Common Stock, par value $0.50 per share - -------------------------------------------------------------------------------- (Title of Class of Securities) 543162101 - -------------------------------------------------------------------------------- (CUSIP Number) Brien M. O'Brien, Chairman and CEO Advisory Research, Inc. 180 North Stetson, Suite 5500 Chicago, Illinois 60601 (312) 565-1414 - -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) September 12, 2008 - -------------------------------------------------------------------------------- (Date of Event which Requires Filing of This Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box. [ ] NOTE: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent. (Continued on following pages) (Page 1 of 13 Pages) - -------------------------- * The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). - ------------------------------ --------------------- CUSIP NO. 543162101 SCHEDULE 13D PAGE 2 OF 13 PAGES - ------------------------------ --------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON ADVISORY RESEARCH, INC. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER -0- ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY 3,316,717 OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH -0- ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 3,316,717 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 3,316,717 - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 9.2% (1) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IA - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS (1) Based on 36,007,597 outstanding shares of the common stock of the Company, as reported in the Company's Schedule 14D9, filed with the Securities and Exchange Commission on August 18, 2008. - ------------------------------ --------------------- CUSIP NO. 543162101 SCHEDULE 13D PAGE 3 OF 13 PAGES - ------------------------------ --------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON ADVISORY RESEARCH SMALL CAP EQUITY FUND, L.P. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION ILLINOIS - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER -0- ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY 78,338 OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH -0- ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 78,338 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 78,338 - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.2% (2) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS (2) See footnote (1) above. - ------------------------------ --------------------- CUSIP NO. 543162101 SCHEDULE 13D PAGE 4 OF 13 PAGES - ------------------------------ --------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON ADVISORY RESEARCH SMALL MID CAP VALUE EQUITY FUND, L.P. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION ILLINOIS - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER -0- ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY 59,300 OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH -0- ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 59,300 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 59,300 - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.2% (3) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS (3) See footnote (1) above. - ------------------------------ --------------------- CUSIP NO. 543162101 SCHEDULE 13D PAGE 5 OF 13 PAGES - ------------------------------ --------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON ADVISORY RESEARCH SMALL CAP EQUITY FUND II, L.P. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION ILLINOIS - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER -0- ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY 62,690 OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH -0- ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 62,690 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 62,690 - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.2% (4) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS (4) See footnote (1) above. - ------------------------------ --------------------- CUSIP NO. 543162101 SCHEDULE 13D PAGE 6 OF 13 PAGES - ------------------------------ --------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON ADVISORY RESEARCH SMALL MID CAP VALUE EQUITY FUND II, L.P. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION ILLINOIS - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER -0- ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY 130,030 OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH -0- ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 130,030 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 130,030 - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.4% (5) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS (5) See footnote (1) above. - ------------------------------ --------------------- CUSIP NO. 543162101 SCHEDULE 13D PAGE 7 OF 13 PAGES - ------------------------------ --------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON ADVISORY RESEARCH ALL CAP FUND, L.P. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION ILLINOIS - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER -0- ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY 8,650 OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH -0- ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 8,650 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 8,650 - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.02% (6) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS (6) See footnote (1) above. - ------------------------------ --------------------- CUSIP NO. 543162101 SCHEDULE 13D PAGE 8 OF 13 PAGES - ------------------------------ --------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON ADVISORY RESEARCH GLOBAL ALL CAP FUND, L.P. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION ILLINOIS - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER -0- ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY 662 OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH -0- ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 662 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 662 - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) Less than 0.01% (7) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS (7) See footnote (1) above. - ------------------------------ --------------------- CUSIP NO. 543162101 SCHEDULE 13D PAGE 9 OF 13 PAGES - ------------------------------ --------------------- ITEM 1. SECURITY AND ISSUER The Schedule 13D filed on August 20, 2008 by Advisory Research, Inc. ("ARI"), a Delaware corporation, Advisory Research Small Cap Equity Fund, L.P. ("Advisory Small Cap"), Advisory Research Small Mid Cap Value Equity Fund, L.P. ("Advisory Small Mid Cap"), Advisory Research Small Cap Equity Fund II, L.P. ("Advisory Small Cap II"), Advisory Research Small Mid Cap Value Equity Fund II, L.P. ("Advisory Small Mid Cap II"), Advisory Research All Cap Fund, L.P. ("Advisory All Cap"), and Advisory Research Global All Cap Fund, L.P. ("Advisory Global All Cap") and along with ARI, the "Reporting Persons", with respect to the common stock, par value $0.50 per share (the "Common Stock") of Longs Drug Stores Corp. (the "Company"), Maryland corporation, is hereby amended by this Amendment No. 1. Only those items hereby reported in this Amendment No. 1 are amended and all other items remain unchanged. ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION. Item 3. is hereby restated as follows: Funds for the purchase of the Common Stock reported herein were derived from available capital of the Advisory Small Cap, Advisory Small Mid Cap, Advisory Small Cap II, Advisory Small Mid Cap II, Advisory All Cap and Advisory Global All Cap funds as well as client funds of ARI. A total of approximately $128.6 million was paid to acquire such Common Stock. ITEM 4. PURPOSE OF TRANSACTION. Item 4 is hereby supplemented, as follows: Reference is made to the Reporting Persons' Letter to Shareholders, dated September 12, 2008, a copy of which is attached hereto as Exhibit D and is incorporated herein by reference. - ------------------------------ --------------------- CUSIP NO. 543162101 SCHEDULE 13D PAGE 10 OF 13 PAGES - ------------------------------ --------------------- ITEM 5. INTEREST IN SECURITIES OF THE ISSUER. Paragraphs (a), (b) and (c) of Item 5 of the Schedule 13D are hereby restated as follows: (a) As of the close of business on September 11, 2008, ARI may be deemed the beneficial owner of an aggregate of 3,316,717 shares of Common Stock, constituting approximately 9.2% of the Common Stock outstanding. Advisory Small Cap may be deemed the beneficial owner of 78,338 shares of Common Stock, constituting approximately 0.2% of the Common Stock outstanding. Advisory Small Mid Cap may be deemed the beneficial owner of 59,300 shares of Common Stock, constituting approximately 0.2% of the Common Stock outstanding. Advisory Small Cap II may be deemed the beneficial owner of 62,690 shares of Common Stock, constituting approximately 0.2% of the Common Stock outstanding. Advisory Small Mid Cap II may be deemed the beneficial owner of 130,030 shares of Common Stock, constituting approximately 0.4% of the Common Stock outstanding. Advisory All Cap may be deemed the beneficial owner of 8,650 shares of Common Stock, constituting approximately 0.02% of the Common Stock outstanding. Advisory Global All Cap may be deemed the beneficial owner of 911,969 shares of may be deemed the beneficial owner of 662 shares of Common Stock, constituting approximately 0.00% of the Common Stock outstanding. The aggregate percentage of shares of Common Stock beneficially owned by the Reporting Persons is based upon 36,007,597 shares of Common Stock outstanding, which is the total number of shares of Common Stock outstanding as of August 14, 2008 as reported in the Company's Schedule 14D9 filed with the Securities and Exchange Commission on August 18, 2008. (b) By virtue of investment management agreements with each of Advisory Small Cap, Advisory Small Mid Cap, Advisory Small Cap II, Advisory Small Mid Cap II, Advisory All Cap and Advisory Global All Cap, and other discretionary client funds, ARI has the power to vote or direct the voting, and to dispose or direct the disposition, of all of the 3,316,717 shares of Common Stock held by ARI. Advisory Small Cap has the power to vote or direct the voting, and to dispose or direct the disposition of all of the 78,338 shares of Common Stock it holds. Advisory Small Mid Cap has the power to vote or direct the voting, and to dispose or direct the disposition of all of the 59,300 shares of Common Stock it holds. Advisory Small Cap II has the power to vote or direct the voting, and to dispose or direct the disposition of all of the 62,690 shares of Common Stock it holds. Advisory Small Mid Cap II has the power to vote or direct the voting, and to dispose or direct the disposition of all of the 130,030 shares of Common Stock it holds. Advisory All Cap has the power to vote or direct the voting, and to dispose or direct the disposition of all of the 8,650 shares of Common Stock it holds. Advisory Global All Cap has the power to vote or direct the voting, and to dispose or direct the disposition of all of the 662 shares of Common Stock it holds. Accordingly, ARI is deemed to have shared voting and shared dispositive power with respect to an aggregate of 3,316,717 shares of Common Stock. (c) Information concerning transactions in the shares of Common Stock effected by the Reporting Persons in since the most recent filing on Schedule 13D on August 20, 2008 is set forth in Schedule A hereto and is incorporated herein by reference. Unless otherwise indicated, all of such transactions were effected in the open market. ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER. Except for ARI acting as investment advisor for its clients who own the shares of Common Stock described herein, the Reporting Persons do not have any contract, arrangement, understanding or relationship with any person with respect to the securities of the Company. ITEM 7. MATERIAL TO BE FILED AS EXHIBITS Exhibit D - Letter to the Board of Directors of Longs Drug Stores, dated September 12, 2008. - --------------------------- ------------------- CUSIP NO. 543162101 SCHEDULE 13D PAGE 11 OF 13 PAGES - --------------------------- ------------------- SIGNATURES After reasonable inquiry and to the best of his or its knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct. Dated: September 12, 2008 ADVISORY RESEARCH, INC. By: /s/ Brien M. O'Brien --------------------------- Name: Brien M. O'Brien Title: Chairman & CEO ADVISORY RESEARCH SMALL CAP EQUITY FUND, L.P. By: Advisory Research, Inc., General Partner By: /s/ Brien M. O'Brien --------------------------- Name: Brien M. O'Brien Title: Chairman & CEO ADVISORY RESEARCH SMALL MID CAP VALUE EQUITY FUND, L.P. By: Advisory Research, Inc., General Partner By: /s/ Brien M. O'Brien --------------------------- Name: Brien M. O'Brien Title: Chairman & CEO ADVISORY RESEARCH SMALL CAP EQUITY FUND II, L.P. By: Advisory Research, Inc., General Partner By: /s/ Brien M. O'Brien --------------------------- Name: Brien M. O'Brien Title: Chairman & CEO ADVISORY RESEARCH SMALL MID CAP VALUE EQUITY FUND II, L.P. By: Advisory Research, Inc., General Partner By: /s/ Brien M. O'Brien --------------------------- Name: Brien M. O'Brien Title: Chairman & CEO ADVISORY RESEARCH ALL CAP FUND, L.P. By: Advisory Research, Inc., General Partner By: /s/ Brien M. O'Brien --------------------------- Name: Brien M. O'Brien Title: Chairman & CEO ADVISORY RESEARCH GLOBAL ALL CAP FUND, L.P. By: Advisory Research, Inc., General Partner By: /s/ Brien M. O'Brien --------------------------- Name: Brien M. O'Brien Title: Chairman & CEO - --------------------------- ------------------- CUSIP NO. 543162101 SCHEDULE 13D PAGE 12 OF 13 PAGES - --------------------------- ------------------- EXHIBIT D ADVISORY RESEARCH, INC. 180 North Stetson Suite 5780 Chicago, IL 60601 September 12, 2008 Mr. Warren F. Bryant Dr. Mary S. Metz, Ph.D Chairman and CEO Chairperson, Governance and Longs Drug Stores Corp. Nominating Committee 141 N. Civic Dr. Longs Drug Stores Corp. Walnut Creek, CA 94596 141 N. Civic Dr. Walnut Creek, CA 94596 Dear Dr. Metz and Warren: Advisory Research, Inc. holds for its clients approximately 9.2% of Longs outstanding shares and is Longs largest shareholder. We are not planning to tender our clients' approximately 3.3 million shares into CVS' tender offer unless there is some dramatic change of circumstances. We have read with keen interest Longs recent disclosures. This attempt at additional disclosure, however, only adds to our dissatisfaction with the $71.50 price offer by CVS as well as, what we believe, the flawed process that the Longs board followed. Moreover, and very importantly, we believe the Longs board failed its owners by not fully analyzing the value of Longs real estate and leases. We note two material recent developments: * RiskMetrics this morning recommended that the Longs shareholders NOT tender into the CVS offer. The following are a number of relevant quotes from the RiskMetrics analysis: - "The deal process raises questions, however. It appears that Longs had a prime opportunity to create a heated auction. ... From the background section of the tender offer documents, it does not appear that Longs made any attempt to play suitor against suitor." - "In addition to process questions, it appears that Longs was unable to negotiate advantageous deal protection provisions. ..." - "We are troubled that shareholders currently do not appear to have enough summary information of the company's real estate assets to make an intelligent decision on whether or not to tender their shares. To be sure, target shareholders generally are not entitled to review all of the target's due diligence materials prior to making a vote or tender decisions. However, here the information concerns assets of the target that comprise over a third of the company's value." - "Longs disclosed on Sept. 10 that the board did not request that management undertake an appraisal of the company's real estate or leases, and the board did not analyze the value of the real estate to CVS. Given the significant value of its real estate asset relative to the deal value, this decision is questionable." * Yesterday, Pershing Square Capital Management, L.P. sent a letter to the Longs shareholders indicating that, among other things: - "While the terms of the Transaction limit the Company's ability to fully re-open the auction process, Pershing Square and Blackstone are not limited from seeking higher and better offers. We are continuing to do just that. Blackstone will carry on its efforts to encourage potentially interested parties to approach the Company with alternative transactions. We are hopeful that, if such parties move forward with alternative transaction proposals, the Company's Board of Directors and its advisors will welcome the opportunity for a better deal." - "We will update you with our progress within 45 days. Please feel free to call me if you have any questions." In sum, we urge the Longs board, first, not to consent to any request by CVS to waive the Minimum Condition and, second, to give Pershing Square time to seek higher and better offers. Very truly yours, David B. Heller President DBH/tlc - --------------------------- ------------------- CUSIP NO. 543162101 SCHEDULE 13D PAGE 13 OF 13 PAGES - --------------------------- ------------------- SCHEDULE A Transactions in the shares by the Reporting Persons since August 20, 2008. All of such transactions were effected in the open market. ARI effected its transactions in its capacity as an investment manager on behalf of certain managed accounts. ADVISORY RESEARCH, INC. Trade Date Shared Purchased (Sold) Price Per Share ($) ----------- ------------------------ ------------------- 8/22/2008 (135) $73.595 8/23/2008 (5780) $72.260 9/2/2008 (5530) $71.629 ADVISORY RESEARCH SMALL CAP Trade Date Shared Purchased (Sold) Price Per Share ($) ----------- ------------------------ ------------------- NONE ADVISORY RESEARCH SMALL MID CAP Trade Date Shared Purchased (Sold) Price Per Share ($) ----------- ------------------------ ------------------- NONE ADVISORY RESEARCH SMALL CAP II Trade Date Shared Purchased (Sold) Price Per Share ($) ----------- ------------------------ ------------------- NONE ADVISORY RESEARCH SMALL MID CAP II Trade Date Shared Purchased (Sold) Price Per Share ($) ----------- ------------------------ ------------------- NONE ADVISORY RESEARCH ALL CAP Trade Date Shared Purchased (Sold) Price Per Share ($) ----------- ------------------------ ------------------- NONE ADVISORY RESEARCH GLOBAL ALL CAP Trade Date Shared Purchased (Sold) Price Per Share ($) ----------- ------------------------ ------------------- NONE -----END PRIVACY-ENHANCED MESSAGE-----