American Stores has agreed to submit a proposal by May 17 for acquisition of Lucky Stores at a price higher than the $61 offer by New York investment firm Gibbons, Green, van Amerongen or terminate its $45 tender offer and not interfere with Gibbons Green takeover.

Lucky Stores, based in Dublin, Calif., said the agreement stems from American Stores' request for access to non-public information on Lucky. Lucky said the agreement provides protections to Lucky stockholders while affording American Stores access to confidential information.Salt Lake City-headquartered American Stores also agreed to extend its tender offer for Lucky until the earlier of the expiration of the Gibbons, Green tender offer, currently scheduled for June 1, or midnight, New York City time, on June 13.

In addition, American Stores agreed for a two-year period not to seek the acquisition of Lucky unless at a price greater than $61 per share.

Lucky Stores said it continues to recommend that its stockholders accept the Gibbons, Green offer as previously distributed to stockholders.