Investors Skeptical Of Walgreen's Revised Rite Aid Offer

Rite Aid Corporation RAD shares are trading lower by $1.10 (17 percent) at $5.75 in Monday's session.

The issue has now shed nearly $3.00 or 33 percent of is value since January 19 (closing price of $8.60), when it announced that the deal to be bought be Walgreens WBA at $9.00 was confronting major anti-trust concerns.

Before the open, the two parties amended the current agreement which was not favorable for Rite Aid shareholders. The two parties agreed to reduce the price for each Rite Aid share to the maximum of $7/share and a minimum of $6.50/share. To pacify the regulators, Walgreens plans to divest of 1,200 Rite Aid stores.

This has the issue trading below the level it was it on October 26, 2015 ($6.08), which was the day before the original $9.00 bid was announced. The following day it sprinted to $8.67, but has never able to even maintain the $8.50 level for long, as the Street expressed it skepticism that the deal would come to fruition. Now there is doubt the deal can be completed even at the adjusted price as the issue remains roughly $0.75 from the lower-end of the revised deal.