Walgreens Boots Alliance (WBA) is set to take legal action should the Federal Trade Commission (FTC) challenge its planned Rite Aid Corp acquisition, according to Wall Street analysts.
As reported in The Street, Cowen and Company analyst Charles Ryhee has stated in a note that he predicts WBA to seek a judge’s decision should the FTC rule to stop the merger. The move has seen shares of WBA rise this week with the company up 0.10 percent while Rite Aid is up 1.16 percent.
The decision to defend the acquisition is thought to be due to Rite Aid’s importance to WBA, with the value of the merger thought to be higher than the deal price bracket. Cowen and Company has predicted that Rite Aid is worth $9.21 per share in value. This is based on synergies of $7.65 per share, while Cowen suggests a standalone value of $2, subtracted by $0.44 in divestures.