Tag Archives: Rite Aid



Rite Aid (RAD) – Merger Arbitrage – 77% upside

Current Price –$3.67

Expected Price - $6.5

Upside – 77%

Expiration Date - Dec 2017

This is my second look at the pending WBA/RAD merger – I was spectacularly wrong the first time and the only consolation is that market was wrong as well – the spread narrowed to 3% before the deal started collapsing. The merger agreement has been adjusted – instead of $9/share WBA is planning to acquire RAD at $6.5-$7/share (77% upside) and higher number of stores will be divested