Canadian analyst speculates on Katz Group sale
MISSISSAUGA, Ontario — Katz Group Canada is withholding comment on a report in the Edmonton Journal Wednesday that speculated on the potential sale of the Canadian drug store giant.
“Katz Group does not comment on rumors or speculation,” said company spokeswoman Michelle Lee when asked about the report.
The Edmonton Journal quoted a report from Perry Caicco, a retail analyst with CIBC World Markets. In that report, issued Jan. 9, Caicco speculated that “reduced profitability and remaining uncertainty about drug reforms in certain provinces, most notably Alberta,” could prompt Katz management, including Katz Group chairman Daryl Katz, to consider selling the company.
Katz originally was headquartered in Edmonton before moving its central offices to suburban Toronto. The company fields more than 1,800 drug stores across Canada under its flagship Rexall banner and other trade names, including PharmaPlus, Guardian and IDA. Its chairman also owns the Edmonton Oilers.
Among the firms that may have expressed interest in the drug store company, according to Caicco and the Edmonton Journal, is the Jean Coutu Group, which operates nearly 390 franchised drug stores in Quebec, New Brunswick and Ontario and owns a sizeable equity interest in Rite Aid. Although Caicco acknowledged that Coutu has given no indication of interest in Katz Group, he noted that government cuts in generic drug reimbursements are reducing profitability in pharmacy retailing in Canada and could trigger a sale, according to the newspaper.
Katz, Caicco speculated, could command a price of $1 billion to $1.5 billion [Canadian].
Baby boomers unprepared for rising healthcare costs
SCHAUMBURG, Ill. — Nearly half (48%) of Americans between the ages of 45 and 70 years have no financial plans in place to protect themselves against outliving their assets and the rising cost of health care, should they live longer than they expected, according to a survey released last week by the Society of Actuaries.
"It’s apparent that Americans, specifically the baby boomer generation — many of whom will be eligible for retirement the beginning of the new year — have not saved enough money for retirement," stated Anna Rappaport, president of Anna Rappaport Consulting. "With the challenges in the housing and financial markets over the past few years, coupled with the fact that people are living longer, many baby boomers are finding themselves unprepared to maintain their lifestyle in retirement. As actuaries, we cannot stress enough the importance of having a plan in place that addresses all of the risks individuals may face in retirement, such as spending available assets too soon, meeting financial care needs, paying for the rising cost of health care and adjusting financially and otherwise to the loss of a spouse."
The survey also found that nearly 71% of respondents plan to claim social security before the age of 70 years.
Looking at other actions Americans take to protect themselves and hedge against potential future risks, the SOA survey found that 75% of Americans ages 45 to 70 years protect their tangible assets, such as housing, through home or renter’s insurance; however, only 19% plan to insure the extra costs of disability and well-being by purchasing long-term care insurance.
The SOA’s survey findings were based upon a nationally representative online survey of 1,006 individuals, ages 45 to 70 years, and had an error rate of plus or minus 3.1 percentage points.
Wubbzy celebrates Easter in ‘egg-cellent’ DVD
BEVERLY HILLS, Calif. — Prepare for an "egg-citing" Easter adventure from Nick Jr.’s popular animated series.
"Wow! Wow! Wubbzy!" will be featured in a brand-new, special seasonal DVD, "Wubbzy’s Egg-cellent Easter." The latest DVD release from Anchor Bay Entertainment tells the story of Wubbzy and his pals celebrating the first day of spring with a game of kickity-kickball and discovering new ways to decorate eggs for the annual Easter egg hunt.
"Wubbzy’s Egg-cellent Easter" will make its way to stores nationwide March 1 and will retail for $16.98.