Friday, April 13, 2018

Rite Aid Shareholders Sour on Albertsons Deal

Wall Street Journal

Some Rite Aid Corp. shareholders plan to oppose a merger with grocer Albertsons Cos. that they believe undervalues the struggling pharmacy chain.

Rite Aid’s shares have fallen about 20% since the companies said they would merge on Feb. 20, a sign of deepening investor disapproval. Albertsons is closely held. Rite Aid said Thursday that same-store sales fell 1.7% in its fourth quarter, the sixth straight period of declines for the key metric.

Rite Aid investors who oppose the approximately $24 billion deal say they aren’t getting a big enough share of the company that would be formed by the combination. These investors say Rite Aid would be better off overhauling its pharmacies on its own.. . . more