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ISS joins Glass Lewis against Rite Aid/Albertsons deal

Published 07/27/2018, 07:04 PM
© Reuters.  ISS joins Glass Lewis against Rite Aid/Albertsons deal
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  • Influential proxy adviser Institutional Shareholder Services has come out against Rite Aid's (NYSE:RAD) $24B acquisition by Albertsons.
  • ISS joins Glass Lewis in opposing the deal, which is set for an August shareholder vote.
  • And it's objecting for largely the same reason: price. Rite Aid shareholders get roughly 29% of the new company, but it's difficult to value that stake in a private company like Albertsons.
  • Glass Lewis sees the deal as a merger of equals, with very little premium for Rite Aid investors; ISS assumes Rite Aid is coming at a discount.
  • A Rite Aid spokesperson tells CNBC the company disagreed strongly with the recommendation. An Albertsons spokeswoman said Glass Lewis "reached the wrong conclusion."
  • RAD finished up 2.1% today; it's down 1% after hours.
  • Now read: Rite Aid's Stock Would Rise Above .00 If Investors Reject Proposed Merger


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