Replies to post #3312 on Walgreens Boots Alliance Inc (WBA)

[Prudent Capitalist]

Not necessarily and not according to Duetsche Bank:

Walgreens Boots Alliance Stock Has 'Run Too Far' on Sycamore Deal Speculation, Deutsche Bank Says

11:05 AM EST, 02/28/2025 (MT Newswires) -- Walgreens Boots Alliance (WBA) shares "have run too far" on speculation surrounding a potential take-private deal with Sycamore Partners, Deutsche Bank said in a Thursday note, citing a Financial Times report.

Citing sources with knowledge of the details, the Financial Times reported Thursday that a buyout of Walgreens would set the stage for a three-way split of the company, with the funding for taking it private not expected to be difficult following weeks of talks with Sycamore.

"The article notes financing is in place (not a surprise to us), but the deal strikes us as incredibly complicated and unlikely to be consummated at a premium to the current share price," Deutsche Bank said.

The bank described the deal as "highly difficult," noting that Walgreens' core US business is "especially challenged."

Deutsche Bank downgraded the company to sell from hold and cut its price target to $9 from $11.

The shares of Walgreens Boots Alliance were down nearly 3% in recent trading.

[Prudent Capitalist]

Not to mention that WBA's largest shareholder, Steffano Pessina, the jerk who orchestrated the merger of Walgreens and Boots and then took everything over and ran it into the ground, is part of the group taking it private and will retain a huge stake in the resulting private entity. Walgreens (WAG) at the time had been trading in the $70 - $90 range before becoming WBA and steadily dropping in share price down to where we are now. Even long time WAG and now WBA shareholders who have a cost basis below $30, and who did not sell their shares up in the $90's, etc. just may likely take a huge bath on this deal.