Ahold Settles Lawsuit in Peapod Case
Dutch supermarkets group Koninklijke Ahold NV said on Friday it had agreed to settle a lawsuit brought against it by U.S. shareholders in its Internet grocery unit Peapod (NasdaqNM:PPOD - news).
A spokesman for the world's third biggest retail and supermarkets group in sales terms, said all parties had agreed in principle to settle the lawsuit for $120,000, adding the agreement was subject to court approval.
In July, U.S. shareholders in Peapod said they would take Ahold and Peapod to court as they regarded Ahold's bid for the remaining shares in Peapod too low. Last month, Ahold launched a tender offer for the 42 percent it did not own in Peapod, offering $35 million, which represented a 72 percent premium to Peapod's share price at the close of trade on Friday July 13.
Ahold spokesman Hans Gobes said he had no details about the size of the stake in Peapod owned by U.S. shareholders.
The company, said that the offer was scheduled to expire on August 23. Ahold owns the Netherlands' biggest supermarket chain but generates about 60 percent of its turnover in the United States.
A spokesman for the world's third biggest retail and supermarkets group in sales terms, said all parties had agreed in principle to settle the lawsuit for $120,000, adding the agreement was subject to court approval.
In July, U.S. shareholders in Peapod said they would take Ahold and Peapod to court as they regarded Ahold's bid for the remaining shares in Peapod too low. Last month, Ahold launched a tender offer for the 42 percent it did not own in Peapod, offering $35 million, which represented a 72 percent premium to Peapod's share price at the close of trade on Friday July 13.
Ahold spokesman Hans Gobes said he had no details about the size of the stake in Peapod owned by U.S. shareholders.
The company, said that the offer was scheduled to expire on August 23. Ahold owns the Netherlands' biggest supermarket chain but generates about 60 percent of its turnover in the United States.