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...
After several years of reducing store counts, Kroger returned to growing its store base in 2012. For years, store remodels were a significant portion of capital investment. Now, it expects to selectiv...
US firm Pop Gourmet Popcorn has secured listings with Middle East retailer Landmark Group as it continues its international expansion....
Global Fruit & vegetables industry profile provides top-line qualitative and quantitative summary information including: market size (value and volume 2008-12, and forecast to 2017). The profile also ...
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....
Fruit & vegetables in the United States industry profile provides top-line qualitative and quantitative summary information including: market size (value and volume 2008-12, and forecast to 2017). The...
Grocery retailers in the US are adapting to a changing consumer environment by adopting new concepts and creative in-store innovations. Several upscale supermarket retailers, for instance, have expand...
- General Mills US "priority" categories gain share
- Interview part 2: BRF CFO Augusto Ribeiro
- The just-food interview: Doux CEO Arnaud Marion
- 2015 preview: A better deal for M&A sellers
- Focus: Danone CEO Faber puts stamp on business
- General Mills outlines "aggressive" NPD drive
- Kraft to reappraise business, says new CEO Cahill
- General Mills earnings drop one-third
- PepsiCo opens snacks plant in Saudi Arabia
- Bimbo to buy Saputo's bakery arm