Walgreens climbs on Sycamore's take-private deal for $10 billion

Shares of pharmacy chain Walgreens Boots Alliance WBA.O rise 5.7% $11.20 premarket

WBA will be taken private by Sycamore Partners for $10 billion, the firms said late on Thursday

Sycamore will pay $11.45 per share, a premium of 8% to Walgreens' closing price of $10.60 on Thursday

"Going private makes sense on paper," said Ann Hynes, an analyst with Mizuho Bank, adding that Walgreens' operational challenges would likely better be handled without commitments to shareholders

Stock has plunged 49.3% in the last 12 months up to its last close