American Stores Will Delay Purchases of Stock in Lucky
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American Stores said Wednesday that it agreed with the Federal Trade Commission not to buy any shares of Lucky Stores Inc. until after midnight on Friday to give the commission time to review possible antitrust issues.
The agreement extends a 10-day waiting period that began when American filed its $2.5-billion buyout offer for Lucky Stores with the Securities and Exchange Commission.
American Stores, the nation’s third-largest grocery chain, is expected to merge its Alpha Beta chain and Lucky Stores.
Michael T. Miller, a senior vice president with American, said the Salt Lake City parent company is in “substantial agreement” with the FTC staff about “issues of the merger” that concern the FTC. “We were working with the commission even before we extended the $65-per-share offer” to buy Lucky, Miller said. “But (the purchase) requires the formal approval of the commission itself.”
According to Miller, the agreement is a formality that does not affect the timing of American’s cash tender offer for all outstanding shares of Lucky. That offer is scheduled to expire at midnight on June 1.
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