A&P Sells Some Metro Shares to Fund Pathmark Buy
MONTVALE, N.J. -- The Great Atlantic & Pacific Tea Company, Inc. (A&P) said yesterday that in connection with its recently agreement to acquire Carteret, N.J.-based former rival Pathmark Stores, Inc., it has sold 6,350,000 shares of its holdings in Montreal-based supermarket operator Metro, Inc. for about $203.5 million.
When it announced the deal with Pathmark earlier this month, A&P said it would partly finance the purchase by selling some of its Metro shares.
The company still has about 11.7 million Metro shares. In August 2005 A&P sold its A&P Canada division to Metro and acquired a stake in the Canadian retailer.
A&P operates 410 stores in nine states and the District of Columbia under the A&P, Waldbaum's, The Food Emporium, Super Foodmart, Super Fresh, Farmer Jack, Sav-A-Center, and Food Basics banners. Once the A&P-Pathmark merger is completed, a 550-store chain will be created. The transaction is expected to close in the second half of fiscal 2007.
When it announced the deal with Pathmark earlier this month, A&P said it would partly finance the purchase by selling some of its Metro shares.
The company still has about 11.7 million Metro shares. In August 2005 A&P sold its A&P Canada division to Metro and acquired a stake in the Canadian retailer.
A&P operates 410 stores in nine states and the District of Columbia under the A&P, Waldbaum's, The Food Emporium, Super Foodmart, Super Fresh, Farmer Jack, Sav-A-Center, and Food Basics banners. Once the A&P-Pathmark merger is completed, a 550-store chain will be created. The transaction is expected to close in the second half of fiscal 2007.