Some Rite Aid shareholders plan to oppose a merger with grocer Albertsons, which they believe undervalues the struggling pharmacy chain, The Wall Street Journal reports.
Rite Aid’s shares have fallen about 23% since the companies announced the merger on Feb. 20, a sign of deepening investor disapproval. Rite Aid says growth in same-store sales declined in its fourth quarter, the six straight period.
Investors who oppose the approximately $24 billion deal say they aren’t getting a big enough share of the company that would be formed by the combination. Rite Aid would be better off overhauling its pharmacies on its own, the investors say.
One of Rite Aid’s 10 biggest shareholders says they plan to vote against the deal because it doesn’t give shareholders a fair premium. Others say they don’t want to invest in the grocery industry, where competition from Amazon and discounters is hurting the sales and margins of traditional supermarkets.
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