Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
I'm sorry no one has answered you quicker.

Yes Walgreens was rumored during the day to be buying Rite Aid, and after the close it appeared even more certain that a strong offer is on the table. 9.41B ?? I don't have either stock but I pay attention.

A buyout offer can come in either all cash or stock and cash or just stock and I don't know which it is for this deal.

The rumors yesterday put the deal at or over $10B so RAD might actually fall some today now that the deal is better defined.

This is a big deal within the pharmacy industry and the DOJ may hold it up over whether or not too much consolidation is bad for the country, so if the spread is bigger than a couple of percent, it may be because people think the deal will get called off, which puts more risk on the time between now and closing.

What it means for you:
I hope the RAD jump was profitable for you!

Usually once the deal is pretty well understood, RAD would trade up to a few % below the deal price per share and the gap will narrow as the closing approaches. It's pretty normal to sell the stock now and let someone else follow along for months longer for the last couple of percentage points on a deal.

Last thing: taxes. If you are investing through a taxable account you need to consider the holding period; if holding through the closing date will bring you into the long-term capital gains tax rate then you need to consider that aspect as well.


-Another Rob
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.