Jan 30, 2017

Rite Aid stock craters after Walgreens merger is delayed

In its bid to buy Rite Aid, Walgreens has lowered the price it will pay from $9 per shareto $7 or even $6.50, and pushed back its merger deadline to July 31.

Rite Aid stocks fell dramatically today more than 17% to $5.72.

(function () { var attempt = 0, init = function(){ if (window.pym) { var pymParent = new pym.Parent("g-rite-aid-01-box", "https://graphics.axios.com/2017-01-30-rite-aid/rite-aid-01.html", {}); } else if (attempt++ < 40) { setTimeout(init, 50); } }; init(); })();

Data: Money.net; Chart: Andrew Witherspoon / Axios

Walgreens also announced they will sell about a quarter of Rite Aid's stores to sway antitrust regulators to approve the deal — that's anywhere from 1000 to 1200 stores compared to the initial plan to sell no more than 500 stores, according to Bloomberg.

The winner: Fred's Inc., the retailer that already agreed to buy out 865 Rite Aid stores, whose shares are up 10% since the deal was announced in late 2015.

The headache: Barclays analysts point out Walgreens' strategic position will improve little should the merger succeed.

Go deeper

George Zimmerman sues Buttigieg and Warren for $265M

George Zimmerman in Sanford, Florida, in November 2013. Photo: Joe Burbank-Pool/Getty Images

George Zimmerman filed a lawsuit in Polk County, Fla. seeking $265 million in damages from Democratic presidential candidates Pete Buttigieg and Elizabeth Warren, accusing them of defaming him to "garner votes in the black community."

Context: Neither the Massachusetts senator nor the former Southbend mayor tweeted his name in the Feb. 5 posts on what would've been the 25th birthday of Trayvon Martin, the unarmed black teen Zimmerman fatally shot in 2012. But Zimmerman alleges they "acted with actual malice" to defame him.

4 takeaways from the Nevada Democratic debate

Photo: Mario Tama/Getty Images

The relative civility of the last eight Democratic debates was thrown by the wayside Wednesday night, the first debate to feature the billionaire "boogeyman," Michael Bloomberg, whose massive advertising buys and polling surge have drawn the ire of the entire field.

The big picture: Pete Buttigieg captured the state of the race early on, noting that after Super Tuesday, the "two most polarizing figures on this stage" — Bloomberg and democratic socialist Bernie Sanders — could be the only ones left competing for the nomination. The rest of candidates fought to stop that momentum.

Klobuchar squares off with Buttigieg on immigration

Buttigieg and Klobuchar in Las Vegas on Feb. 19. Photo: Mario Tama/Getty Images

Former South Bend, Ind., Mayor Pete Buttigieg went after Sen. Amy Klobuchar on the debate stage Wednesday for voting to confirm Customs and Border Protection Commissioner Kevin McAleenan and voting in 2007 to make English the national language.

What she's saying: "I wish everyone was as perfect as you, Pete, but let me tell you what it's like to be in the arena. ... I did not one bit agree with these draconian policies to separate kids from their parents, and in my first 100 days, I would immediately change that."