Rite Aid Corp. gave further detail on the rejected takeover bid from private-equity firm Spear Point Capital Management, saying that the offer “was not credible and did not warrant further exploration.” Spear Point had said it would pay $14.60 for each Rite Aid shares outstanding, according to the New York Post, a a 97.3% premium to Tuesday’s closing price of $7.40. But Rite Aid says Spear Point provided “no evidence of financing” for the deal and required that the pharmacy retailer provide “multiple months of exclusivity” and “spend months soliciting competing offers.” Rite Aid highlights Spear Point’s lack of experience buying a company the size of Rite Aid. “In addition, Spear Point’s proposal was conditioned on none of the Company’s debt becoming due and payable upon a change in control, which contradicts the terms of nearly all of Rite Aid’s debt instruments,” the announcement said. Rite Aid stock is set to open Thursday at $8.20. Shares have plunged 55% over the last year.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.