Walgreens Boots Alliance shares surged 17.74% on Tuesday after the Wall Street Journal reported that the pharmacy company is in sale discussions with private-equity firm Sycamore Partners.
In Tuesday trading, the stock soared nearly 28%, marking its biggest single-day gain since around 1980.
Walgreens and Sycamore are in talks for a deal that could be completed early next year, and would take the pharmacy chain off the public market, according to the WSJ.
It has been a tough year for Walgreens shares, which before Tuesday had been the worst performer of any stock in the S&P 500.
The company’s market value has been slashed from a peak of over $100 billion to below $8 billion.
The pharmacy chain announced in October that it would be closing around 1,200 outlets over the next three years, after reporting a US$3 billion (A$4.7 billion) loss in the fourth quarter, driven by the write-down of an investment in China and opioid liability charges.
Walgreens’ retail division has also been hit hard by the domination of online retailers, like Amazon.com and discount giants like Dollar General and Costco.
Walgreens Boots Alliance (NASDAQ: WBA) shares closed 17.74% higher at $10.42.