Rite Aid Corp (RADCQ)

[drobx]

I agree with your math, but don't agree with how you phrase it. I would say that if the deal completes, then RAD shareholders would get approximately $2.50 per share of RAD. If a 5% discount is to be applied, that would relate to what the deal is worth to shareholders today, not what we would get if the deal does in fact go through. Regardless, that calculation is based on the implicit value that Albertson's applies to the new stock shares. The real question, of course, is how will the market value the shares, and I have no idea about that. One thought though is that Albertson's would probably prefer that people take shares rather than cash, and if this is the case then maybe the "real" value is somewhat higher.