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

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Comments (8)
  • Wes Blevins
    , contributor
    Comments (47) | 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 2014, 08:15 AM Reply Like
  • DaveMo30
    , contributor
    Comments (33) | Send Message
    7% dividend raise - pretty weak...
    6 Aug 2014, 09:05 AM Reply Like
  • Lakeaffect
    , contributor
    Comments (1481) | 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 2014, 09:07 AM Reply Like
  • Michael Reilly
    , contributor
    Comments (17) | Send Message
    Chicago based and no tax inversion? Hmmm....what a coincidence!
    6 Aug 2014, 09:47 AM Reply Like
  • june1234
    , contributor
    Comments (4504) | 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 2014, 12:25 PM Reply Like
  • sneaker1404
    , contributor
    Comments (465) | 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 2014, 10:07 AM Reply Like
  • june1234
    , contributor
    Comments (4504) | 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 2014, 10:31 AM Reply Like
  • wag less
    , contributor
    Comments (7) | Send Message
    The cost reduction initiatives will be on the backs of the employees
    6 Aug 2014, 04:24 PM Reply Like
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