Walgreens Boots Alliance (WBA) is being acquired by Sycamore Partners for $11.45 per share in cash. Institutional holdings increased by 30 million shares since the announcement. The deal spread is around 2%, down from 10%. Short interest has fallen by 50%.

S3’s MAP application can be used to analyze long holdings. This may become particularly relevant in special situations.

Walgreens Boots Alliance (WBA) is being acquired by Sycamore Partners for $11.45 per share in cash, in a deal expected to close by the end of the year.

When the deal was announced in March, institutional holdings increased by 30 million shares (approximately 20%) and have remained stable since.

The value of those holdings rose by $400 million (approximately 25%) as the stock also appreciated.

Long concentration increased by 4 percentage points, equivalent to a 25% rise.

The deal spread is currently around 2%, down from 10% prior to the announcement.

Because it is a cash deal there is no shorting of the parent stock to short to analyze.

The days-to-cover metric—based on average trading volume—indicates how long it would take to liquidate the position. This also serves as a proxy for downside risk should the deal fall through.

MAPS data indicates that Event-Driven investors hold 1.7% of the outstanding shares, Multi-Strategy funds hold 2.5%, and Quantitative funds hold 2.15%.

Since the deal has been announced, the short position in WBA has fallen by 50%.

Similar analysis can be done in other M&A deals and events. The numbers are clearer than in non-event stocks, although similar analysis can be done on normal stocks.

The acquisition of Walgreens Boots Alliance (WBA) by Sycamore Partners highlights significant institutional interest and reduced short interest. The deal spread has narrowed, and hedge funds hold notable positions. Monitoring downside risk is recommended.

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