Hey guys,
It was brought to my attention that Walgreens has a tentative agreement to buyout Rite Aid, which was announced in late December. The buyout offer is $6.50 minimum and the stock is down under $4. The scheduled close of the deal is July 31.
Note: The deal was initially offered at $9 a share under the assumption Walgreens would have to sell 500 rite aid stores, Later it was determined that they would have to sell 1000 rite aid stores and Walgreens restructured its offer down to $7 max $6.50 min. This restructure happened in mid January.
I'm curious what everyone's take is on this and why the Stock price would drop well below the buyout offer price?
Would this a be something worth investing in and then waiting for the buyout for some easy profits?
I'm new to this so and don't know much about buyouts, but the fact the stock price has dropped so low below the buyout offer price has caught my attention.
Any insight is much appreciated.
JTBurkeen
http://www.investors.com/news/report-ftc-may-block-walgreens-takeover-of-rite-aid/
@JTBurkeen The best traders on profit.ly ignore buyouts, mergers, and acquisitions. Stick to big percent gainers, and avoid guessing games. IMO
Ignore The buyouts - too unpredictable
Thank you for the responses, I get you, it looked to good to be true, so I figured I'd ask about it, my main focus has been charts and patterns (like I said im new to this) but that got brought up by a friend so I wanted to ask about it. @WFKS I see, I assumed the store sells was to please the FTC but I didnt realize they are making serious moves to halt the buyout, thanks again everyone
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