Seeking Alpha

Walgreen confirms full Alliance Boots takeover and U.S. HQ

  • Walgreen (NYSE:WAG) confirms it will buy the remaining 55% of Alliance Boots it doesn't own.
  • The company rattled investors yesterday with a late announcement that it will remain domiciled in the U.S.
  • The corporate headquarters of Walgreen Boots Alliance will be in the Chicago area, while Boots will be run from an operations center in the U.K.
  • Walgreen says it will accelerate cost-reduction initiatives and sets a new EPS goal for FY16 of $4.25-$4.60.
  • WAG -5.9% premarket
Comments (8)
  • Wes Blevins
    , contributor
    Comments (34) | Send Message
    10.3% drop in pre-market trading makes WAG a stock trading at 16.1X forward earnings and 14.6X the low-end of their 2016 projected earnings. Also puts the yield at just above 2 percent.
    Clearly some of the inversion hopes were already priced in, but not to the tune of 10+ percent. This seems like a fine buying opportunity to me.
    6 Aug, 08:15 AM Reply Like
  • DaveMo30
    , contributor
    Comments (5) | Send Message
    7% dividend raise - pretty weak...
    6 Aug, 09:05 AM Reply Like
  • Lakeaffect
    , contributor
    Comments (1013) | Send Message
    This stock had gotten way ahead of itself, as have many dividend darlings. WAG is a well run company with a top notch management team. Decisions such as this one are taken based on the long term benefit to the company.
    6 Aug, 09:07 AM Reply Like
  • Michael Reilly
    , contributor
    Comments (11) | Send Message
    Chicago based and no tax inversion? Hmmm....what a coincidence!
    6 Aug, 09:47 AM Reply Like
  • june1234
    , contributor
    Comments (2579) | Send Message
    The street is punishing them for that choice. Will be interesting to see going forward if current mgmt. is replaced by a more cooperative one.
    6 Aug, 12:25 PM Reply Like
  • sneaker1404
    , contributor
    Comments (388) | Send Message
    This is one investor that is happy they are staying the US. I am adding this morning (although not massively... but then again, I never do anything massively). 7% divy raise after a major acquisition seems prudent to me, not weak.
    6 Aug, 10:07 AM Reply Like
  • june1234
    , contributor
    Comments (2579) | Send Message
    Ain't that something a US company announces it will remain HQ'd in the US and its stock gets punished for it. Pick Taiwan next time
    6 Aug, 10:31 AM Reply Like
  • wag less
    , contributor
    Comments (5) | Send Message
    The cost reduction initiatives will be on the backs of the employees
    6 Aug, 04:24 PM Reply Like
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