Rite Aid Most Likely Takeover, Poll Says

Rite Aid is poised to be acquired, according to <I>TheStreet's</I> readers, beating out Palm, Radio Shack, GameStop and CKE Restaurants in a poll of the most likely takeover targets.
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(Retail takeover poll updated with CKE Restaurants news.)

NEW YORK (

TheStreet

--

Rite Aid

(RAD) - Get Report

is the most likely takeover target in today's market, according to a recent poll by the

TheStreet

.

The drugstore has raised eyebrows since

Walgreen

(WAG)

announced its purchase of Duane Reade back in February. The

deal ignited chatter of other possible buyouts in the sector

.

According to

TheStreet's

poll, 60% said Rite Aid will be bought out within the next year.

Walgreen and

CVS Caremark

(CVS) - Get Report

have been cited as possible suitors, as has

Wal-Mart

(WMT) - Get Report

. Private equity it also a viable option, and would give Rite Aid a chance to get rid of its debt and make structural changes out of the public eye.

Palm

(PALM)

is also being bandied about as a potential takeover target, with

Lenovo

emerging this week as the lead suitor. Still, just 15.4% of voters believe a deal for Palm will get done.

> > Bull or Bear? Vote in Our Poll

This isn't a surprise given how many possible buyers, including

HTC

and

Dell

(DELL) - Get Report

, have already passed on a deal. Fear arose this week that Palm might be unable to find a buyer after it was announced that Michael Abbot, senior vice president of software and services, is leaving the company.

RadioShack

(RSH)

rumors were reinvigorated this week after a BB&T analyst told the

Dallas Business Journal

that the rumors are likely true.

The

New York Post

broke the RadioShack news earlier this year, and analyst Anthony Chukumba said the paper has a good track record when it comes to reporting these types of acquisitions.

Best Buy

(BBY) - Get Report

is being discussed as a possible buyer, as are private-equity concerns. Still, only 12% of voters said a RadioShack takeover is imminent.

On the bottom of the spectrum, a mere 7.6% of voters said a

GameStop

(GME) - Get Report

acquisition will happen, while a scant 5% believe

CKE Restaurants

(CKR)

is poised for a buyout.

CKE said on Monday that it will accept a bid from Apollo Management. The private-equity firm offered the restaurant $12.55 a share, or $694 million, which surpasses a prior offer from Thomas H. Lee Partners.

In February, CKE accepted an offer from private-equity firm Thomas H. Lee, but had 40 days to seek higher bids. Under the terms of the deal, Thomas H. Lee would pay $11.05 a share and would assume $309 million of CKE's debt.

CKE said it notified Thomas H. Lee on Saturday terminating their agreement.

-- Reported by Jeanine Poggi in New York.

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>>Retail Takeovers: Rumors Run Rampant

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