Kroger or Walmart Could Easily Pay $50 or More for Whole Foods Market (WFM), Outbidding Amazon - Barclays
Shares of Whole Foods Market (NASDAQ: WFM) are on watch after Barclays analyst Karen Short said this morning that based on an estimated ~$750 in synergies, they believe Kroger (NYSE: KR) and/or Wal-mart (NYSE: WMT) could bid $50 per share or higher, topping Amazon's (NASDAQ: AMZN) $42 per share offer.
For KR, Short said a 100% debt-financed bid at $50 could be +6.3% accretive and a bid up to $60 would still be accretive.
For WMT, Short said a 100% debt-financed bid at $50 could be +2.2% accretive and a bid up to $70 would still be accretive.