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Rite Aid Cites 'lack Of Credibility' To Reject Spear Point Capital's Acquisition Proposal

Rite Aid Corporation (RAD), a drug store chain, on Thursday confirmed that it previously rejected a non-binding, off-market proposal from Spear Point Capital Management to buy all of its shares.

Following an elaborated review, Board concluded saying "the proposal was not credible and did not warrant further exploration."

The store chain noted that Spear Point's proposal provided no evidence of financing, required multiple months of exclusivity and then called for Rite Aid to spend months soliciting competing offers.

In addition, the company said, Spear Point has no track record of acquiring public companies the size and complexity of Rite Aid.

Commenting on its future plans, Rite Aid said it will be responsive to all credible proposals that will enhance stockholder value.

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