Fred's adopts poison pill as merger deadline looms
MEMPHIS, Tenn. — As the July 7 deadline for the Federal Trade Commission’s decision on the Walgreens-Rite Aid merger gets closer, Fred’s Pharmacy is taking action to protect itself as the deadline for the Federal Trade Commission’s decision on Walgreens Boot Alliance’s proposed acquisition of Rite Aid merger draws closer.
The retailer has adopted a short-term shareholders rights plan, or “poison pill,“ that will expire on September 25. Fred’s noted that the plan was not undertaken in response to a specific takeover bid or any other proposal to acquire control of the retail chain. Rather, it was made as a result of the "increased trading volatility” in the company’s shares and in anticipation of "substantial trading activity” related to the Walgreens-Rite Aid decision deadline.
As part of the proposed Walgreens-Rite Aid deal, Rite Aid is expected to divest up to 1,200 stores to Fred's Pharmacy. The acquisition, if approved, would make Fred’s the third-largest drug store chain in the United States.