(Reuters) - Alden Global Capital reported on Thursday a stake of 24.8 percent in Fred’s Inc (FRED.O), and said it would engage in discussions with the discount store operator over its $950 million acquisition of 865 stores from Rite Aid Corp (RAD.N).
Fred’s shares were up 4 percent at $20.15 in extended trading.
The hedge fund also called the company’s shares “undervalued”.
The stake would make Alden the top shareholder in Fred's Inc, according to Thomson Reuters data. bit.ly/2ihg0iG
Rite Aid said on Tuesday it would sell 865 stores to Fred’s Inc to satisfy antitrust concerns over its proposed takeover by Walgreens Boots Alliance Inc (WBA.O).
Reporting by Aravind K in Bengaluru; Editing by Ankur Banerjee