A&P, Pathmark extend timing agreement with FTC

By Lisa Kerner

Charlotte, N.C., Aug. 8 - The Great Atlantic & Pacific Tea Co., Inc. and Pathmark Stores Inc., in an agreement with the Federal Trade Commission, will not consummate A&P's acquisition of Pathmark before 11:59 p.m. on Sept. 25, the companies announced on Wednesday.

A&P's majority shareholder the Tengelmann Group and Pathmark received second requests from the FTC resulting in an extended timing agreement as well as an extension of the Hart-Scott-Rodino waiting period. The transaction is slated to close in the second half of 2007.

As previously reported on March 5, A&P agreed to acquire Pathmark for $1.3 billion in cash, stock and debt assumption or retirement. Pathmark shareholders will receive $9 in cash and 0.12963 of a share of A&P stock for each Pathmark share.

The transaction, which includes a one-year termination fee of $50 million, will result in a 550-store, $11 billion supermarket chain, a company news release stated.

A&P is based in Montvale, N.J., and operates 410 supermarkets in nine states and the District of Columbia. Pathmark is a 141-store supermarket chain based in Carteret, N.J.

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