Alden Global Capital reported on Thursday a stake of 24.8 percent in Fred’s Inc (FRED.O) and said it would engage in discussions with the discount store operator over its $950 million acquisition of 865 stores from Rite Aid Corp (RAD.N).
Fred’s shares were up 4 percent at $20.15 in extended trading.
The hedge fund also called the company’s shares “undervalued”.
The stake would make Alden the top shareholder in Fred’s Inc, according to Thomson Reuters data. bit.ly/2ihg0iG
Rite Aid said on Tuesday it would sell 865 stores to Fred’s Inc to satisfy antitrust concerns over its proposed takeover by Walgreens Boots Alliance Inc (WBA.O).
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Source: Reuters.com
