Letters to the Editor

Shryock letter: Albertsons-Rite Aid

In respect to the proposed merger of Albertsons Companies with Rite Aid drug (RAD), an analyst presentation was held May 15.

As judged by financial site forums, many of the “mom and pop” retail investors in Rite Aid are not happy about this merger. In RAD, we see potential. Walgreens bought a third of RAD stores and gave us over $4 billion to pay debt down. We invested in RAD believing that now it will be successful if management just pays attention to business.

In Albertsons, we see a conglomeration controlled by private equity firm Cerberus. Debt appears staggering and attempts to form a public corporation have failed twice. We see Albertsons-Cerberus using RAD to go public and be plundered. Our CEO has ties to Albertsons and will be a CEO with merged entity. Longstanding ties are claimed between our board and Cerberus-Albertsons. We see that Albertsons’ investors have scored big even as debt swells. We think the raid on our investment won’t end well.

Big ETF investors may not care, but we retail investors would like an analyst to ask one question, “What debts did RAD pay off with their 4 billion?”

Arnold Shryock, Nampa