RAD - Rite Aid confirms rejection of non-binding offer from Spear Point Capital (update)

Update 8:15am: Adds premarket trading. Rite Aid (NYSE:RAD) confirmed that it previously rejected a non-biding, "off-market" proposal from Spear Point Capital Management to acquire the drugstore chain. Rite Aid fell 2.8% in premarket trading. Rite Aid (RAD) said the offer provided no evidence of financing, required multiple months of exclusivity and called for RAD to spend multiple months soliciting competing proposals, according to a statement.  "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," Rite Aid said in the statement. "Furthermore, Spear Point has no track record of acquiring public companies the size and complexity of Rite Aid."  Rite Aid (RAD) shares surged Wednesday, though they pared a majority of their gains amid a NYPost report that Spear Point Capital offered to buy the company for $14.60/share,

For further details see:

Rite Aid confirms rejection of non-binding offer from Spear Point Capital (update)