JANA Partners Discloses 12.5M Stake In Walgreen Company (WAG); Barry Rosenstein Joins The Board Of Directors

In a recent filing with the Securities and Exchange Commission, Barry Rosenstein and his fund, JANA Partners, have disclosed the ownership of 12.5 million Walgreen Company (NYSE:WAG) shares. The company announced yesterday the addition of Barry Ronestein to its Board of directors, as part of a settlement following Walgreen’s takeover of drugstore chain Alliance Boots. In addition, the new shareholder will name two other directors to Walgreen’s Board of directors. JANA and Rosenstein will use their position to push for a larger share-buyback program from Walgreen Company (NYSE:WAG), according to a person familiar with the matter, cited by Bloomberg.

Andreas Halvorsen and his fund, Viking Global, hold a significant stake in Walgreen Company (NYSE:WAG), although they have limited their exposure during the second quarter. In its latest 13F filing, Viking Global has reported the ownership of 20.1 million shares, down 17% during Q2, valued at approximately $1.49 billion. Sean Cullinan has also chosen to reduce his fund’s stake in the company by 13% during the same period of time. His fund, Point State Capital, reportedly holds 8.87 million shares worth in excess of $657 million.

For the three months ending May 31, 2014, Walgreen Company (NYSE:WAG) has reported earnings of $0.81 per share, derived from revenues of $19.4 billion. Analysts expect the company to announce revenues of $19 billion and earnings per share of $0.75 for the subsequent quarter. The company has a market cap of $60.5 billion and the stock is traded at a trailing Price to Earnings (P/E) ratio of 21.xx.

Rosenstein has continued reducing his stake in QEP Resources Inc (NYSE:QEP), selling approximately 2,34 million shares in a recent move. As a result, JANA Partners is left with 2.97 million shares, which gives it control over 7.2% of the company’s common stock. Rosensteins is also busy convincing the board of PetSmart Inc. (NASDAQ:PETM) to review strategic alternatives in order to guarantee maximum value for its shareholders. In a recent letter, JANA Partners and Barry Rosenstein have criticized the Board’s refusal to engage in such an action and the management’s plan to boost short-term results.

Disclosure: none