Dive Summary:
- Levi & Korsinsky, a New York-based shareholder rights law firm representing Harris Teeter Supermarkets Inc. shareholder, filed suit in a Charlotte, N.C., court to potentially prevent Kroger Co. from continuing with its $2.5 billion acquisition of the grocery chain.
- According to the firm, the proposed purchase price of $49.38 per share in cash undervalues the company.
- Harris Teeter stock traded at $49.53 midday Thursday.
From the article:
... The purchase price, agreed to by both Kroger’s and Harris Teeter’s (NYSE: HTSI) boards of directors, is just 1.8 percent higher than Harris Teeter’s closing stock price the day before the deal was announced. But it’s 34 percent above Harris Teeter’s stock price in January, when media reports came out that its board was considering a sale of the company. ...
