Posted on 11/02/2022 4:10:24 PM PDT by Twotone
WASHINGTON — The attorneys general of California, Illinois and the District of Columbia are suing Albertsons in an effort to stop the grocery chain from paying a nearly $4 billion dividend to its shareholders.
The lawsuit, filed Wednesday in U.S. District Court in Washington, D.C., asks the court to block the payment until the attorneys general have reviewed Albertsons’ proposed merger with Kroger Co.
The lawsuit is the second this week seeking to delay the dividend payment. The state of Washington's Attorney General Bob Ferguson filed a similar lawsuit in state court Tuesday.
Boise, Idaho-based Albertsons said Wednesday that both lawsuits are without merit.
Kroger announced its plan to buy Albertsons for $20 billion last month. The deal is expected to close in early 2024 if it’s approved by the Federal Trade Commission and the Department of Justice and survives any court challenges.
The merger agreement included a special dividend of up to $4 billion -- or $6.85 per share -- that Albertsons is scheduled to pay its shareholders Monday.
The Democratic attorneys general of California, Washington, Illinois and the District of Columbia, as well as the Republican attorneys general of Arizona and Idaho, sent a letter to Albertsons last week asking the company to delay the payment.
The attorneys general say the dividend -- which equals nearly one-third of Albertsons’ $11 billion market value -- would deprive the company of cash it needs to operate while regulators review the merger.
“Albertsons’ rush to secure a record-setting payday for its investors threatens District residents’ jobs and access to affordable food and groceries in neighborhoods where no alternatives exist,” D.C. Attorney General Karl Racine said in a statement.
(Excerpt) Read more at ktvb.com ...
Not a merger lawyer, but the regulators will sometimes require the merging parties to divest certain assets to maintain a level of competition. But they probably won’t get down to a granular single town level. You could send a letter to the regulator revieing the merger - probably won’t make any difference in the long run, but maybe worth it for the cost of a stamp.
Given the current administration, they are more likely to push for them to open stores in the ghetto.
We havea about 8 or 9 major chains within 15 miles (OK, two of the chains are owned by Algertson, so subtract one for that), two warehouse stores, and specialy grocers for Chinese, Korean, Japanese, Indian.
Cold remedies containing pseudoephedrine are federally regulated. It’s even regulated internationally.
Interesting—when I am asked for proof of age I just point to my bald head—everybody cracks up laughing and I am good to go!
Thanks Twotone. Fingers crossed that we end up with two stores, with hopefully different owners. Lots of folks here depend on both stores for their livelihood.
I don’t by alcohol at Kroger stores anymore after they implemented this policy.
Other stores don’t waste my time with photo ID bullshit, so I use them instead.
I have never bought the cold or nicotine stuff, but if I want to buy a fifth of something, or some beer the store does not need my name, address, height, weight, eye color, birth date etc.
They may claim not sell that info to anyone now, who knows if they do or dont, but I am reasonably certain that they will at some point.
At least I am certain that cellular company would never sell personal location data or other info, cause that would suck if they did.
I’d send out the dividends. From another state if necessary. And close all stores in those states.
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