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Winnipeg Free Press Friday, December 8, 2006
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Jean Coutu goes to New York court to transfer US$850 million debt to Rite Aid

Friday Dec 8 2006

MONTREAL (CP) - The Jean Coutu Group (TSX:PJC.A) filed a request in a New York court Friday to transfer US$850 million of debt to Rite Aid (NYSE:RAD) as part of the sale of the Eckerds and Brooks pharmacies to the American company.

The Quebec-based company said the filing, announced after the markets closed, responds to any questions raised by the holders of the notes, prior to the sale closing. "Jean Coutu wants to clear the path to avoid all ambiguity," said Michael Murray, director of investor relations.

Last August, the company announced the sale of 1,800 American pharmacies to Rite Aid for US$3.4 billion.

The transaction would give Jean Coutu a 32-per-cent stake in Rite Aid, provide US$1.45 billion in cash and transfer the US$850 million debt.

Rite Aid shareholders will vote on the acquisition in March.

Jean Coutu shares gained 15 cents to close at $12.67 Friday on the Toronto Stock Exchange.






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