Rite Aid Corp (RADCQ)

[Prudent Capitalist]

It was the federal government that would not allow the total buyout of RAD by WBA, and it was the federal government that nixed the first amended buyout proposal which involved selling off some of the RAD locations to Freds, with WBA ending up with a lesser share of RAD. In the end, RAD sold off the 2,186 locations to WBA to raise needed cash, and the locations sold were the better and more valuable store locations. If the original WBA buyout of RAD would have gone through RAD holders would not be getting beat up like this today, and would not have had to consider accepting the reduced share price offers in the amended proposals. At this point, RAD is left without sufficient scale to compete, and perhaps insufficient scale and financial muscle to survive. Time will tell.