NEW YORK — Drug store operator Walgreen Co. said yesterday it will continue to pursue Longs Drugs Stores Corp., which earlier in the day said it would not enter buyout talks with Walgreen — a move that had Longs' largest shareholder "irate."

Longs' board of directors declined to enter negotiations with Walgreen, instead sticking with CVS Caremark Corp.'s offer of $71.50 per Longs share, or about $2.7 billion.

Several Longs investors have refused to support the CVS offer, saying it is too low and criticizing the company for not sharing information with other potential buyers.

Walgreen offered a higher price of $75 per share, but Longs said the company did not explain how it would finance the offer, and highlighted the risks that regulators wouldn't approve the deal because of potential antitrust law violations.

Walgreen spokesman Michael Polzin said the company believes its offer is better for Longs shareholders.

"We are disappointed with the refusal of the Longs board to discuss our superior proposal," he said. "Longs stockholders and the marketplace as a whole have demonstrated the strong support for a transparent and fair process that more fully values the company. We remain committed to pursuing our proposal, which we believe creates superior value for our respective stockholders."

Longs has 521 stores in four states, including 39 in Hawai'i. Its shares closed down $1.52 at $74.79 yesterday.

David Heller of Advisory Research, the largest shareholder in Longs, said the firm is "irate" that Longs had turned down what it says is a reasonable offer. In his view, Longs has been secretive about the sale process, and by keeping the value of its assets private, has discouraged other potential buyers from making offers.