Ahold extends offer for Giant Food stock

Maryland Watch

June 18, 1998

Royal Ahold NV, the international food retailer that is buying Giant Food Inc. for $2.7 billion, said yesterday that it is extending by a month its tender offer for all of the Landover company's outstanding Class A nonvoting stock at $43.50 a share.

The offer, announced last month, was to have expired yesterday at midnight. It now will run through 5 p.m. July 15, Ahold said.

As of yesterday, Netherlands-based Ahold had secured 32.9 million Class A, nonvoting shares out of a total of about 59.9 million shares, according to the Bank of New York, depository for the offer.

Ahold, which owns four grocery chains on the East Coast, secured control of Giant, the Baltimore-Washington region's dominant supermarket chain, by agreeing to buy all the voting shares from 1224 Corp., a holding company controlled by Giant executives and J. Sainsbury PLC, Britain's second largest grocery retailer.

Ahold is expected to retain the home-grown, 176-store Giant chain's name.

The purchase is expected to boost Ahold's annual sales to $35 billion, making the company the fifth largest supermarket retailer in the United States.

Pub Date: 6/18/98

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