Acquisition PotentialWBA shares are up +17% after The Wall Street Journal reported that WBA is in talks with consumer retail-focused private equity firm Sycamore Partners to go private in a deal expected to close early next year.
Financial ReallocationThe decision to cut its dividend is expected to strengthen WBA's financial position, allowing for reinvestment in areas to drive long-term profitability and competitiveness.
Strategic InitiativesThe suspension of the dividend frees up close to another $1 billion of annual cash availability, which is seen as the right move for WBA’s ability to reboot the business.