Walgreens sales rise 7.6% in March
Deerfield, Ill. — Walgreens said Tuesday that sales for the month of March rose 7.6% to $6.28 billion, compared with $5.83 billion in the year-ago period.
Duane Reade stores, acquired in April 2010, contributed 2.8% to the total sales increase for the month.
Same-store sales rose 3% in March, not including Duane Reade stores. Results topped Wall Street expectations.
Walgreens opened 12 stores during March, including three relocations, acquired one store and closed two.
Blockbuster auction to continue into second day
New York City — Blockbuster’s bankruptcy auction is set to stretch into a second day on Tuesday after preliminary talks between bidders and the chain’s representatives dragged on late into Monday, a company spokesman said.
Blockbuster did not say how many bidders it attracted, but halls outside the auction room in Manhattan bankruptcy court were packed with attorneys and investment bankers refining their bids throughout Monday, Reuters reported.
With talks wrapping up Monday evening, the bidding itself is set to take place on Tuesday and will be public, said Blockbuster spokesman Michael Freitag, according to Reuters.
Satellite television company Dish Network Corp. and billionaire investor Carl Icahn qualified for the auction by submitting bids last week, the Wall Street Journal reported on Friday, citing people familiar with the matter.
A Dish spokesman declined to comment. Icahn did not return calls seeking a comment, but a room at the courthouse was reserved for the Icahn group.
Gordon Brothers Group and Hilco Merchant Resources also submitted a joint bid for Blockbuster’s inventory, the Journal said on Monday.
The auction will be followed by a hearing before federal bankruptcy judge Burton Lifland on April 7 to approve the new owner.
Diamond Foods takes a chip out of P&G
SAN FRANCISCO and CINCINNATI — A Procter & Gamble potato chip brand will merge with a snack company in a $2.35 billion deal.
P&G said that it inked a definitive agreement to merge its Pringles business into Diamond Foods — whose portfolio includes such brands as Emerald Nuts and Pop Secret popcorn — which boasted revenues of about $2.4 billion. The transaction, which is expected to be completed by the end of 2011, is subject to approval by Diamond shareholders and the satisfaction of customary closing conditions and regulatory approvals.
Diamond Foods president and CEO Michael Mendes called the deal a "strategic combination" and that the company will build on Pringles’ brand equity. The combined business will remain in San Francisco, Diamond Foods said.
For fiscal year 2012, Diamond anticipates strong growth in its core business with earnings per share of $2.85 to $2.98 on a standalone basis, which represents a 30% increase over 2010 EPS.