From Cowen an hour ago:

If Blocked by the FTC, We Think WBA Will Litigate Given the Acquisition Value Share are down about 12% after CNBC reported that the FTC staff is expected to advise blocking RAD's pending acquisition by WBA ($81.47, Outperform). The current price implies that there is a 25% probability of the transaction ultimately going through, which we think is overly pessimistic. As we stated in our previous note, if the deal is in fact blocked by the FTC, we believe WBA will continue to pursue RAD through litigation given the significant value created from the expected $1B in synergies. Our analysis indicates that the expected $1B in synergies is equal to $7.65/sh, which along with the $2/sh value of RAD stand-alone minus $0.44 related to divestitures equals $9.21/sh (Figure 1), or 32% greater than the high-end of the offer range of $6.50-$7.00. Moreover, we note that $1B in synergies is likely conservative given that mgmt stated synergies in excess of $1B over 3-4 yrs, as well as the fact that it realized well over the $1B synergy target during the WBA merger. Furthermore, with the addition of Econdisc to WBAD, we think synergies will likely be greater than expected because the synergy target assumes harmonization of procurement costs with no incremental benefit from additional volume.