Shares of Rite Aid Corporation
The new deadline represents a three-month delay from the original projected closing date, but it eased growing market fears that the deal may not go through at all. The deal has faced intense regulatory antitrust scrutiny.
However, Walgreens CEO Stefano Pessina was adamant that he expects the deal to go through.
“From the fact that we have included some part of Rite Aid potential profit now in our guidance, you can really understand that we are confident about this deal,” Pessina said on the earnings call.
Walgreen’s buyout price for Rite Aid is $9/share, still well above the stock’s current $7.05 market price. This significant discount implies that the market is not nearly as optimistic about the deal as Walgreens management is.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.