Lucky Stores, the Dublin, Calif.-based grocery chain targeted for takeover by Salt Lake City-based American Stores, said Wednesday it is still reviewing alternatives to American's $45 tender offer "with a view to providing Lucky stockholders with greater value."
As part of the review, Lucky said it is having discussions with "a number of parties" regarding possible sale of the company. Lucky said it has also discussed with potential lenders the possibility of a leveraged recapitalization of the company.None of the parties or alternatives was named.
A spokesman said Lucky's board of directors has not made a decision to sell the company nor to launch any alternative transaction. The spokesman said that will be decided "only after a review of available alternatives is completed."
Earlier this month, Lucky's directors declared the $45 per share American Stores offer inadequate and recommended stockholders not tender their shares. The Lucky board also rejected a proposal by American to increase its bid to $50 a share in a negotiated acquisition.
And, as a result of limitations under federal antitrust laws, Lucky said it is unlikely that American Stores may purchase shares under its offer until at least April 28.
Lucky's directors have also implemented a warrant dividend plan a so-called "poison pill" and deferred the distribution date for the rights certificates, which would have been April 20 as a result of the American Stores offer, until April 27, unless deferred by Lucky's board.
The spokesman said Lucky is mailing to its stockholders a summary of the warrant dividend plan, together with letters advising its stockholders of the developments.