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Anybody Betting on the Rite Aid and Walgreens Merger?

Posted on 6/7/17 at 2:11 pm
Posted by Triple Bogey
19th Green
Member since May 2017
5974 posts
Posted on 6/7/17 at 2:11 pm
Just curious if anyone here thinks the deal is going to go through or not. I picked up some shares of RAD the other day for pretty cheap.
Posted by CourtesyFlush
Baton Rouge
Member since Feb 2010
1318 posts
Posted on 6/7/17 at 3:44 pm to
What is likely to happen to the stock if you hold it if either the merger does, or does not, go through?

Not sure how these things work
Posted by DaBeerz
Member since Sep 2004
16886 posts
Posted on 6/7/17 at 8:26 pm to
Pretty sure you missed out, I used to follow that stock as a possible comeback, it shot up on the news of the merger but not sure if it has any value now... good luck though
Posted by New Boy
Member since Aug 2009
890 posts
Posted on 6/7/17 at 8:53 pm to
Ain't gonna happen, bro
Posted by lynxcat
Member since Jan 2008
24121 posts
Posted on 6/7/17 at 8:59 pm to
Therenis always an acquisition premium so ou want to own the company being bought.
Posted by jkcooper92
Louisiana
Member since Jun 2014
182 posts
Posted on 6/7/17 at 9:28 pm to
Same here I bought common around the same time. Got tired of the rumors and bad news and got out. I've been contemplating getting back in though.
Posted by sneakytiger
Member since Oct 2007
2471 posts
Posted on 6/7/17 at 10:33 pm to
Not necessarily. Check out the Huntsman/clariant deal. It's an all stock merger of equals. Although HUN is trading at a pretty big discount to CLN, for some reason.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37004 posts
Posted on 6/8/17 at 8:22 am to
Remember there's a significant third party to this transaction. Fred's, which will buy about 1,000 Rite Aid stores after the merger.

One of the things I keep seeing rumors about, is that the FTC doesn't think Fred's can handle the purchase.
Posted by Triple Bogey
19th Green
Member since May 2017
5974 posts
Posted on 6/8/17 at 4:18 pm to
I mean, the FTC let the AT&T / Directv merger go through and I thought that seemed crazy. Walgreens is buying at 6.50 and you can currently buy RAD for 3.50. A true binary event. Either make a lot or lose a lot for shareholders.
Posted by Pistol...2K4
25 foot assassin
Member since Jun 2004
6918 posts
Posted on 6/8/17 at 10:04 pm to
I made a few hundred dollars on RAD in a 3 day period recently , but just as a trade....I'd never invest in it to hold. Massive debt load in RAD , and if that merger gets shot down then you'll be left holding the empty bag.

HPJ is a better cheap stock play.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37004 posts
Posted on 6/9/17 at 12:20 am to
quote:

A true binary event. Either make a lot or lose a lot for shareholders.


You aren't kidding.

RAD needs this merger much more than WBA.

If you buy into RAD at 3.50 and the merger goes through, that's a really nice return on your investment.

If the deal is blocked, I could see RAD in bankruptcy very, very soon.

Which also begs an intersting question - you have to wonder if Walgreens even wants this anymore.
Posted by ThatsWhatSheSaid69
Member since Aug 2012
91 posts
Posted on 6/26/17 at 12:50 pm to
Anybody has any thoughts on this? I see its up 24% right now. Thinking about getting in.
Posted by headedwest21
Member since Dec 2016
1108 posts
Posted on 6/27/17 at 2:53 pm to
Made over $1k on it yesterday and sold out. Figured it would drop back down. Could have made little more but glad I took my profits
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37004 posts
Posted on 6/29/17 at 1:24 pm to
LINK

Deal has been amended to include a store purchase, as opposed to a merger. Rite Aid will keep a number of stores.

What's interesting is this: The number of stores Walgreens will end up with in this new deal, is very close to the number of stores it would have ended up with under the old deal, after they sold a chunk to Fred's.

Which brings me back to my original suspicion: The FTC didn't think Fred's could hold up their end of the bargain.
This post was edited on 6/29/17 at 1:27 pm
Posted by GeauxZone90
Baton Rouge
Member since Jul 2010
2917 posts
Posted on 6/29/17 at 4:41 pm to
Sold this shite yesterday before it dropped. Made close to 30 percent return
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