Down 89%, Should You Buy the Dip on Walgreens Boots Alliance?

Core Viewpoint - Walgreens Boots Alliance is in a pending acquisition with Sycamore Partners, which could provide investors with a potential profit of up to 36% from the current share price [1][2]. Group 1: Acquisition Details - The acquisition deal stipulates that Walgreens shareholders will receive $11.45 per share in cash, while the current trading price is $10.60, indicating an 8% difference [3]. - There is a provision for shareholders to receive an additional amount of up to $3 per share, depending on the sale of Walgreens' debt and primary care assets, potentially raising the total payout to $14.45 per share, representing a 36% profit from the current price [4]. Group 2: Market Dynamics - The stock price gap exists because Walgreens traded at $8.85 before the buyout reports, and the market has adjusted to the acquisition terms, indicating a belief that the deal is likely to close [5]. - The current share price reflects a higher likelihood of the deal closing compared to its pre-announcement level, but uncertainties remain until the deal is finalized [6]. Group 3: Investment Considerations - The 36% return is considered a best-case scenario, and the final payout could be lower, influenced by market volatility and the appetite for Walgreens' debt and assets [7]. - Investors are advised to focus on the baseline buyout price of $11.45, with the 8% gap being a more conservative target, as a failed deal could lead to a drop back to the pre-announcement price of $8.85 or lower [8].