Why Walgreens Boots Alliance Rallied Today

Group 1 - Walgreens Boots Alliance shares increased by 7.6% amid reports of a potential take-private deal with Sycamore Partners [1][4] - The proposed deal price is between $11.30 and$11.40 per share, with financing from major banks being arranged [2][4] - Sycamore's plans may involve breaking Walgreens into three separate entities, each with distinct capital structures [3][5] Group 2 - The stock price has fluctuated significantly, trading as low as the low $8 range in December and nearly$13 in early January [6] - Current trading price is $11.02, indicating limited upside potential for investors, particularly for those not engaged in merger arbitrage [5][7] - The deal is not finalized, and there is a risk of talks faltering, which could lead to a significant drop in stock price if the deal collapses [5][7]