Walgreen was planning to buy Rite-Aid for $9.4 billion in 2015. Consider yourself as a group of newly hired analysts for Walgreen and you are asked to conduct a research on Rite-Aid as an independent group and present your recommendation to the board. The nature of your job is highly time-sensitive since your recommendation will be consulted prior to the finalization of the deal. Your group is given two weeks' time to complete the analysis. (Does your group support the $9.4 billion offer? Is the offer price too high or too low? Why?
What type of risk should be considered? How should these risks be addressed?
Please provide justifications for your recommendation.