NEW YORK, NY / ACCESSWIRE / April 24, 2017 / Rite-Aid and Walgreens Boots Alliance are now facing yet another twist in the plot to the story of their potential and highly anticipated merger. A report released by Bloomberg on Wednesday indicated that the Federal Trade Commission might sue to block the drugstore chains from merging. Walgreens had been planning to sell up to 1,200 Rite Aid stores to Fred's Pharmacy as a part of an effort to win over FTC approval. The two stocks tumbled after traders worriedly reacted to the Bloomberg report.
Rite Aid Corporation
Walgreens Boots Alliance, Inc.
Rite-Aid shares closed down 4.28% and saw their lowest levels in trading on Friday since September of 2013, hitting as low as $3.76 in intra-day trading. The drugstore chain had been spiraling down since Wednesday when a report from Bloomberg, citing the trade publication Capital Forum, revealed that the FTC may sue to block Rite-Aid from merging with Walgreens Boots Alliance. Walgreens had offered $9 per share originally for Rite Aid but had revised the agreement earlier in January to $6.50 to $7 per share. Investors had been betting heavily for months that Walgreens Boots Alliance would be able to complete its proposed acquisition of rival drugstore chain Rite Aid.
Access RDI's Rite Aid
Corporation Research Report at:
Walgreens shares edged down on Friday, but surprisingly didn't see as negative a reaction as Rite-Aid and Fred's Pharmacy. Traders may be increasingly doubtful that the takeover will ever happen, but seemed pleased by the company's announcement from last week when Walgreens said that its board of directors had declared a regular quarterly dividend of 37.5 cents per share, an increase of 4.2 percent over the year-ago period. The dividend is payable June 12th, 2017 to stockholders of record on May 18th, 2017. Shares closed down 0.13% on Friday.
Access RDI's Walgreens Boots
Alliance, Inc. Research Report at:
Our Actionable Research on Rite Aid Corporation (NYSE: RAD) and Walgreens Boots Alliance, Inc. (NASDAQ: WBA) can be downloaded free of charge at Research Driven Investing.
We are committed to providing relevant and actionable information for the self-directed investor. Our research is reputed for being a leader in trusted, in-depth analysis vital for informed strategic trading decisions. The nimble investor can leverage our analysis and collective expertise to execute a disciplined approach to stock selection.
RDInvesting has not been compensated; directly or indirectly; for producing or publishing this document.
Disclaimer: This article is written by an independent contributor of RDInvesting.com and reviewed by Nadia Noorani, CFA® charter holder. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.
For any questions, inquiries, or comments reach out to us directly at:
Research Driven Investing, Unit #901 511 Avenue of the Americas, New York, NY, 10011
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.