|
Rite Aid mulls asset sale
|
 |
September 30, 1999: 11:14 a.m. ET
Drugstore chain looking to drop part of recently bought PCS unit to cut debt
|
NEW YORK (CNNfn) - Rite Aid Corp. shares rebounded Thursday, after its chief executive said the no. 3 U.S. drugstore chain is looking to sell part of its health systems business in a bid to raise cash and reduce debt.
Company chief executive Martin Grass told analysts after Wednesday's New York market close that it may unload part of the PCS Health Systems division acquired just eight months ago for $1.5 billion.
Shares of RIte Aid (RAD) were up 11/16 to 14-1/16 Thursday in early morning trading. Analysts have suggested that the stock's plunge from a 52-week high of 51-1/8 makes the company a takeover target.
The PCS purchase from Eli Lilly & Co. (LLY) lifted Rite Aid's long-term debt to $5 million from $3.3 billion over the past year.
Rite Aid already plans to sell 250 under-performing stores in the western United States, and Grass said the retailer is negotiating with six potential buyers. It has already sold 38 California stores for $186 million. 
|
|
|
|
|
|
Rite Aid
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
