Summary
- Voting on Rite Aid - Albertsons deal is this Thursday, August 9.
- Two more are voting against deal.
- What happens if the deal falls apart.
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With the Rite Aid (RAD) Albertsons deal vote approaching this week, specifically on Thursday, August 9, just how likely will the deal go through? A number of big investor names announced their intent to vote against the deal.
Both ISS (Institutional Shareholder Services) and Glass Lewis came out against the proposed $24 billion acquisition. Both firms are objecting to the takeover price, which is 29 percent of the merged firm but has no set price. Albertsons said Glass Lewis reached the wrong conclusion, citing recent strength in Albertsons’ quarterly results, cost synergies arising from the merged firm, and revenue opportunities from the merger.
were unchanged year-over-year at $18.653 billion, up from $18.460 billion last year. The company did manage to trim interest expenses by $20 million, to $254.6 million. But once it takes on Rite Aid and adds significantly to the debt load, RAD shareholders will face higher interest expenses and lower cash flow as the company scurries to cut operating costs of the merged firm.
