Marsh Shareholder Bemoans Sale Price

INDIANOPOLIS - Although Marsh Supermarkets Inc. here is poised to proceed with its deal to be acquired by Florida-based Sun Capital come September, one of the chain's large shareholders has voiced strong dissention with the alliance.

"I do not believe that the $11.125 per share transaction fully reflects the asset value of our company, as my analysis yields an asset value of . . . $22-$28 per share," Braden M. Leonard, managing member of the Indianapolis-based BML Investment Partners, L.P., wrote in a filing with the U.S. Securities and Exchange Commission. BML, which owns about 5 percent of Marsh's B-class shares -- making it the fourth-largest shareholder -- accumulated more than 80,000 additional shares between June 26 and Aug. 18, following Marsh's disclosure that it signed a deal with Sun and subsequently said it had another suitor, New York-based Drawbridge Special Opportunities Advisors and a partner, Cardinal Paragon Inc.

In a filing with the SEC last week, Leonard said a substantial gap exists between the Sun offer and the company's book value. As such, he said he plans to vote the deal, which is expected to be sealed at a Sept. 22 meeting, and which has already survived an auction and another shareholder lawsuit.

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