Washington State’s Attorney General Sues Albertsons To Stop $4B Pre-Merger Payout
Washington State Attorney General Bob Ferguson filed a lawsuit on Tuesday to block grocery chain Albertsons from paying dividends to shareholders before closure of its proposed merger with supermarket operator Kroger.
Cerberus invested just $100 million for control of Albertsons in 2013, later taking it public in 2020 at a $9.3 billion market cap (not including around $8.5 billion in debt). Albertsons recently agreed to be acquired by rival Kroger at more than double the $16 per share IPO price.
Related: $25B Kroger-Albertsons Merger Deal Could Close 400 Stores
Cerberus currently holds a 28.37% stake in Albertsons, worth around $5.18 billion via the Kroger deal. It also has two of the company’s 11 board seats, including a co-chair.
But it’s in line to get more than $1 billion of that total next week, via a special dividend that was announced at the exact same time as the Kroger merger. That money, or set to be paid out next week, and wouldn’t be clawed back if the Kroger merger is blocked by antitrust regulators or otherwise doesn’t close.
Featured News
Apollo, Sony Bid to Acquire Paramount Faces Regulatory Hurdles
May 7, 2024 by
CPI
Turkey Fines Meta $10.4 Million for Abusing Market Dominance
May 6, 2024 by
CPI
Canadian Watchdog Launches Inquiry into Lululemon’s Greenwashing Practices
May 6, 2024 by
CPI
Massachusetts Supreme Court Deliberates On Ballot Redefining Gig Worker Status
May 6, 2024 by
CPI
European Commission Approves Nippon Steel’s $14.9 Billion Buyout of U.S. Steel
May 6, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI