Discretion being the better part of valor, Rite Aid Corporation (NYSE:RAD) and privately-owned Albertsons have called off their contentious proposed merger.
The Abort button was hit the evening ahead of a shareholder vote on the US$24bn deal; a number of shareholders had expressed dissatisfaction at the deal while advisory firms Glass Lewis and Institutional Shareholder Services had also urged shareholders to reject the deal.
READ Albertsons to buy the rest of Rite Aid that isn't going to Walgreens
“While we believed in the merits of the combination with Albertsons, we have heard the views expressed by our stockholders and are committed to moving forward and executing our strategic plan as a standalone company,” said Rite Aid chairman and chief executive officer John Standley.
Rite Aid shares were down 13.8% at US$1.50 in pre-market deals. The decision to call off the merger appears to have caught the market on the hop as the shares closed 1.2% higher yesterday.
Moving the other way were shares in Yelp Inc (NYSE:YELP), the reviews site operator.
Traders gave second-quarter results the thumbs-up, chasing the stock 15.8% higher to US$44.18 in after-hours trading.
Earnings per share of 12 cents were comfortably ahead of the penny a share the tech company had been expected to earn.
Revenue, at US$235mln, was also ahead of expectations, by US$3mln.
Flat earnings per share compared to expectations of a loss per share of 15 cents were enough to have investors signing up for stock in Roku Inc (NASDAQ:ROKU), the provider of media-streaming technology.
The shares advanced US$5.15 to US$52.28 on the back of news that average revenue per user had grown 48% year-on-year to US$16.60 in the quarter, helped by interest in the football World Cup.
Investors also tucked into Jack in the Box Inc (NASDAQ:JACK) after the fast food restaurants operator topped analysts' estimates with its fiscal third-quarter earnings and revenues.
Earnings per share of US$1 were 12 cents higher than the market had been expecting while revenues of US$188mln were ahead of the US$184.3mln consensus forecast.
Shares in the burger seller rose 7.2% to US$92 in screen-based trading.
Jack in the Box is under fire for a sexual innuendo-laden TV commercial to promote a new menu item. The spot features "Jack likening the chain's Teriyaki Bowls to a part of the male anatomy. https://t.co/MLCHxipSv8 pic.twitter.com/dnf7rhzHAM
— CBSDFW (@CBSDFW) August 8, 2018