Drugstore chain Walgreens Boots Alliance Inc. is closing in on a roughly $10 billion deal to sell itself to Sycamore Partners, a private-equity firm, which would then take Walgreens private and likely break it up, according to reports late Monday.
Talk of a sale has propped up shares of Walgreens lately. One research team is downbeat about a deal.
Shares of Logitech International SA (NASDAQ:LOGI) and Walgreens Boots Alliance Inc (NASDAQ:WBA) are gapping lower today after downgrades.
CNBC's David Faber breaks down the details on Sycamore's possible deal with Walgreens.
Deutsche Bank believes the hype over a Sycamore buyout and subsequent breakup has gone too far, and puts the deal at risk.
Walgreens Boots Alliance (WBA) closed the most recent trading day at $11.23, moving +1.72% from the previous trading session.
Shares of Walgreens Boots Alliance (WBA 1.72%) rose on Thursday, up as much as 7.3% before settling into a 2.2% gain by 3:30 p.m. ET. That gain was still notable, since the broader markets were down significantly on the day.
Sycamore Partners plans to split Walgreens' three main businesses into separate units with distinct capital structures after taking the pharmacy chain private, the Financial Times reported on Thursday, citing people familiar with the matter.
Walgreens said it had entered into a settlement agreement with telemedicine provider Everly Health Solutions as part of which the pharmacy chain operator will pay the company $595 million over a contract dispute for COVID-19 testing.
Shares of Walgreens Boots Alliance (WBA 11.23%) were moving higher today after CNBC's David Faber said that a possible deal to take over the ailing pharmacy and urgent-care chain was still alive.
As per a media report in December, Walgreens Boots Alliance Inc WBA suggested the company is in talks to be acquired by Sycamore Partners.
Despite Moody's latest negative rating, Walgreens' focus on operational turnaround and improving cash flows makes it a good hold.