RAD - Rite Aid pares some gains after report of rejected $800M bid (update)

Update: Updates share price. Rite Aid (NYSE:RAD) pared more than half of its earlier gains, now up 12% after earlier jumping 32%, on a report that the drugstore chain rejected a bid for $14.60/share, or $815 million. Rite Aid rejected an offer from Spear Point Capital Management, according to a NYPost report, which cited an interview with the firm's co-founder Ron Bienvenu. The offer was made on March 30 and represented a 56% premium to RAD's closing price of $9.36 that day. Rite Aid rejected the bid, telling Spear Point in a letter this month that the investor didn't "adequately" understand the issues it may encounter in purchasing a company with about $3 billion in distressed loans, according to Bienvenu. Spear Point is said to be considering starting a hostile tender offer directly to holder, Bienvenu told the Post. RAD didn't immediately respond to NYPost request for comment. The Spear Point bid comes after Rite Aid

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Rite Aid pares some gains after report of rejected $800M bid (update)