US: Harris Teeter shareholders seek to block Kroger deal
Kroger struck a deal earlier this month to buy Harris Teeter for US$2.44bn
Harris Teeter shareholders have filed a lawsuit against US retail giant Kroger in a bid to block the purchase of the regional grocery chain.
Kroger struck a deal earlier this month to buy Harris Teeter for US$2.44bn. The move, which came five months after Harris Teeter hired JP Morgan to help explore sale options, will see Kroger purchase all outstanding shares for $49.38 per share in cash.
The price represents a premium of 33.7% to the Harris Teeter closing share price on 18 January, the day of the first media report it was evaluating strategic alternatives.
Shareholders of Harris Teeter, however, filed a lawsuit in Mecklenburg County earlier this week claiming it failed to get a high enough premium to its closing price.
New York-based shareholder rights law firm Levi & Korsinsky, said in the filing: "The investigation concerns whether the Harris Teeter Board of Directors breached their fiduciary duties to stockholders by failing to adequately shop the Company before agreeing to enter into the transaction, and whether The Kroger Co. is underpaying for Harris Teeter, thus unlawfully harming Harris Teeter shareholders."
The attorneys are asking for the transaction to be blocked or to award shareholders damages.
Kroger did not return a request for comment at the time of going to press.
Perhaps the biggest story of the year, with the widest impact on the sector, was the horsemeat contamination saga. However, it was ironic the scandal should occur when food companies are placing incre...
US firm Pop Gourmet Popcorn has secured listings with Middle East retailer Landmark Group as it continues its international expansion....
Unilever CEO Paul Polman last week met analysts to explain how the consumer goods giant is changing its business amid slowing sales, moves that are set to include 2,000 jobs being cut....
- Interview: Mondelez eyes sweet success in China
- The benefits of engaging staff in sustainability
- How food companies involve staff in sustainability
- What next for Bernard Matthews? - comment
- Why Danone is withdrawing Dumex from Vietnam
- Fonterra says value-added strategy paying off
- Ireland unveils national plan to tackle obesity
- B&G Foods acquires ABF's US spice business
- General Mills profit falls as sales disappoint
- Bernard Matthews pensions scheme under review
- Global Chocolate Confectionery Overview: Challenges, Opportunities and Risks
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Global Foodservice Market 2016-2020
- Constellation Brands, Inc. (STZ) - Financial and Strategic SWOT Analysis Review
- Global Food and Drinks Closures: Performance and Opportunities