Rite Aid (RAD) Back-of-the-Envelope Value Seen at $3/Share

Walgreens scraps Rite Aid merger, will instead buy half its stores

June 29, 2017 8:06 AM EDT

By Siddharth Cavale and Diane Bartz

(Reuters) - Drugstore chain Walgreens Boots Alliance Inc (NASDAQ: WBA) scrapped its deal to buy Rite Aid Corp (NYSE: RAD) after failing to win antitrust approval, but said it would instead buy nearly half of the smaller rival's U.S. stores for $5.18 billion.

Rite Aid's shares plunged about 28 percent to $2.85, while Walgreens shares were up 1 percent at $77.97. Walgreens also ended a related deal to sell as many as 1,200 Rite Aid stores to Fred's Inc (NASDAQ: FRED),... More

Wall Street hit hard as tech softness continues

June 29, 2017 7:29 AM EDT

By Lewis Krauskopf

(Reuters) - Wall Street fell sharply on Thursday, with the S&P 500 and the Dow industrials suffering their worst daily percentage drops in about six weeks, as a recent decline in technology shares deepened and outweighed strength in bank shares.

The technology sector , which has led the S&P 500's 8-percent gain for the year, dropped 1.8 percent, and were the worst-performing major group. Declines in big tech stocks, including Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), weighed the most on the benchmark... More

Rite Aid (RAD) Misses Q1 EPS by 4c

June 29, 2017 7:16 AM EDT

Rite Aid (NYSE: RAD) reported Q1 EPS of ($0.05), $0.04 worse than the analyst estimate of ($0.01). Revenue for the quarter came in at $7.8 billion versus the consensus estimate of $8.17 billion.

Retail Pharmacy Segment revenues were $6.4 billion and decreased 4.9 percent compared to the prior year... More

Rite Aid (RAD) volatility elevated into terminating merger with Walgreens Boots Alliance (WBA), selling stores

June 29, 2017 7:13 AM EDT

Rite Aid (NYSE: RAD) June weekly call option implied volatility is at 432, July is at 194; compared to its 52-week range of 19 to 188 into terminating merger with Walgreens Boots Alliance (WBA), selling stores.

... More

Fred's (FRED) Comments on Termination of Walgreens-Rite Aid Deal

June 29, 2017 7:08 AM EDT

Freds, Inc. (NASDAQ: FRED) today commented on the termination of the merger between Walgreens Boots Alliance, Inc. (NASDAQ: WBA) and Rite Aid Corporation (NYSE: RAD) and the related asset purchase agreement of Freds with Walgreens and Rite Aid.

Michael K. Bloom, Chief Executive Officer, said, While the acquisition of additional stores was an opportunity for... More

Walgreens (WBA)/Rite Aid (RAD) Terminate Merger Agreement; Walgreens to Buy 2,186 Rite Aid Stores and Related Assets

June 29, 2017 7:00 AM EDT

(Updated - June 29, 2017 7:05 AM EDT)

Walgreens Boots Alliance, Inc. (Nasdaq: WBA) announced today a new definitive agreement with Rite Aid Corporation (NYSE: RAD) under which Walgreens Boots Alliance will purchase 2,186 stores, three distribution centers and related inventory from Rite Aid.

The consideration for the transaction will be $5.175 billion in cash, the assumption by Walgreens Boots Alliance of the related real estate leases and the grant of an option to Rite Aid, exercisable through May 2019 and subject to certain conditions, to become a member of Walgreens Boots Alliances group... More