Whole Foods Markets (WFM)

[DewDiligence]

There isn't going to be a competing bid, IMO. WFM agreed to be bought by AMZN because AMZN committed to keeping John Mackey and the other top-level managers who have been running WFM for the past 30+ years.

Another suitor, such as a private-equity firm, would be unlikely to have any use for Mackey and his sidekicks, which means a counter-offer would have to go hostile in order to succeed.

Moreover, the AMZN-WFM deal has a "no shop" clause (i.e. WFM cannot seek another offer) and a steep breakup fee payable by WFM if they were to accept an unsolicited offer from a third party.

Bottom line: If you can get $42/sh or slightly more, take it.