Pathmark, A&P shareholders OK merger deal

By Lisa Kerner

Charlotte, N.C., Nov. 8 - Pathmark Stores, Inc. shareholders and Great Atlantic & Pacific Tea Co. shareholders approved the companies' merger at separate meetings on Thursday.

The merger was approved by holders of 73.9% of the shares of Pathmark common stock outstanding, and 99.9% of shares voted by Pathmark stockholders at the special meeting were voted in favor of the transaction.

The number of A&P shares voting to approve issuance of stock in connection with the merger represents 75% of the total number of shares outstanding and entitled to vote, a news release stated.

Both companies expect the transaction to close by the end of December pending regulatory approvals and customary closing conditions.

As previously reported, A&P agreed on March 5 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 prior news release stated.

Pathmark is a 141-store supermarket chain based in Carteret, N.J.

A&P is based in Montvale, N.J., and operates 410 supermarkets in nine states and the District of Columbia.

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