Albertsons Demands $9.3B From Kroger Over Failed Merger—More Than Its Own Market Cap
ACI sits 18% above its 52-week low of $10.86.
Summary
Albertsons is now seeking $9.3B in damages from Kroger in Delaware Chancery Court, up from the previously reported 'at least $8 billion'. The demand includes a $600M breakup fee, $5.43B to $6.88B in lost merger premium, $1.4B to $1.7B in taxes, and at least $75M in interest and costs. The total exceeds Albertsons' own market cap of about $6.1B, underscoring the scale of the claim. This follows yesterday's report of the lawsuit and today's Q2 earnings miss and withdrawn outlook. The case centers on Kroger's alleged failure to use 'best efforts' to overcome antitrust hurdles, with Kroger counter-suing and denying the claims.
At the time of this announcement, ACI was trading at $12.81 on NYSE in the Trade & Services sector, with a market capitalization of approximately $6.2B. The 52-week trading range was $10.86 to $20.00. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.