Rite Aid’s (RAD) June 5th filing in connection to the merger with Albertsons presented much of the same thing. The pharmacy store argued that it will be better off as a bigger entity. Unfortunately, the stock is trading in a way that signals a merger will not win shareholder support. Stuck in the range of $1.50 - $1.80 a share, the upside, and downside case will depend on the outcome of the merger vote. Management did not set a date for a shareholder vote yet, which could signal a lack of shareholder support. Will the deal fall through? Should shareholders even entertain the argument for the merger?
Below: drug store stocks are out of favor.
