CAMP HILL, Pa. -- Shareholder advisory firm Proxy Governance Inc., Vienna, Va., is advising Rite Aid shareholders not to support company's plan to purchase more than 1,800 Brooks and Eckerd drug stores from the Jean Coutu Group, Longueuil, Quebec, for $3.5 billion, according to media reports. The firm said the financial and strategic aspects of the proposed deal leave it unconvinced that the merger would benefit Rite Aid's competitive position or shareholder value. If the deal goes through, several Rite Aid or Eckerd pharmacies in western Pennsylvania and other regions could be closed, and deal would make Rite Aid the largest drug store chin in the Northeast. Rite Aid shareholders will vote on the bid Jan. 18.
Proxy Firm Disputes Rite Aid/Eckerd Deal
CAMP HILL, Pa. -- Shareholder advisory firm Proxy Governance Inc., Vienna, Va., is advising Rite Aid shareholders not to support company's plan to purchase more than 1,800 Brooks and Eckerd drug stores from the Jean Coutu Group, Longueuil, Quebec, for $3.5 billion, according to media reports.