Tag Archives: Walgreens Rite Aid merger



Rite Aid (RAD) and Fred’s (FRED) – Merger Arbitrage With Hedge – 9% upside

Current Price –$8.25

Offer Price – $9.00

Upside – 9.0%

Expiration Date – Jan 2017

This is another large cap merger arbitrage deal where the spread of 9% is mostly due to pending regulatory approval. Recent developments suggest the deal is likely to close. At the same time there is opportunity to hedge the risk of the deal failing.