Prudent:
Hopefully you are aware Jana Partners is a hedge fund not a Insurance, Pension, Endowment or Mutual fund looking for long term Investments/returns over 5-10 or more years.
The Hedge funds culture is driven by money, power and control issues, these are the tools used by Activist investors, see Carl Icahn, KKR "Barbarians at the Gate", Bill Ackman "Herbal life", Steve Eisman "The Big Short", and Asher Edelman the real life Gordon Gekco and his formenr employee Barry Rosenstein.
Media reporting plays a Hugh role in the everyday Investors perception of safety and growth prospects for a company before investing money.. Ref Miguelon lawsuit over GAAP projections and future job limitations .
WSJ reported 2 Executives at Walgreens resigned over 1.1 billion earnings error,based on product cost inflation. Walgreens Co also stated their would be no Tax Inversion.
Miquelon leaves and Crawford retires
As Barry Rosenstien is a member of Walgreens Board of Directors and a Hedge fund trader, it was reported(April20014) that Jana was involved with other Hedge funds in Paris pushing Walgreens to do a tax Inversion..
Yesterday Rosenstein announced that a investment he owns needs a new CEO, He is fully aware that Carl Icahn and Hertz board is working through that issue..
In his letter to Hertz holdings. (Sec.gov),these are the issues he Identified to Hertz BOD as an Activist Investor.
1) Pricing
2) Accounting
3) Retaining and recruiting talent
4) Customer and Brand perception
5) Restoring creditably with Investors.
These are similar open arguments he would be making against Walgreens if he currently did not sit on Walgreens board, he's not holding a committee assignment at Walgreens either, yet the dismissed CEO of HTZ is the Chairman of Walgreens finance committee, Ironic to say the least!!!
As I said the run to $69.00 a share will continue, baked into big.yanks correct position on merger funding
What happens to the price after the Buyout and reorg into a holding company?,
My guess Valuation models & cash flows will be in focus aside from the lawsuit wispers.
Perhaps you or big.yank would like to comment.
GLTA!!
