© Reuters. Rite Aid (RAD) Confirms It Rejected Spear Point’s Acquisition Offer
Rite Aid Corp (NYSE:) said today that it rejected an offer from Spear Point Capital Management to acquire all of its shares.
Spear Point made an offer to acquire all of the outstanding shares.
“The Company and its Board of Directors reviewed the proposal with the assistance of its financial and legal advisors, and the Board concluded that the proposal was not credible and did not warrant further exploration,” Rite Aid said in a statement.
The pharmacy chain said that the “Spear Point proposal provided no evidence of financing, required multiple months of exclusivity and then called for Rite Aid to spend months soliciting competing offers.”
Additionally, Spear Capital “has no track record of acquiring public companies the size and complexity of Rite Aid.”
On Wednesday, the New York Post reported that an unnamed private equity firm made an offer of $815 million for RAD. As a result, Spear Point is now considering launching a hostile tender offer directly to shareholders.
Rite Aid had a market capitalization of $392.7 million based on Wednesday’s closing price.
Rite Aid stock price is down 2.5% in pre-open Thursday.
By Senad Karaahmetovic