Giant takeover bid extended a third time

Maryland Watch

August 04, 1998

Royal Ahold NV, the Netherlands' biggest retailer, has extended its $2.7 billion takeover bid for Giant Food Inc. a third time after securing about 81 percent of the outstanding shares.

Giant investors have until 5 p.m. Aug. 14 to tender shares. The $43.50-a-share offer, announced May 19, was originally scheduled to close June 17 and was extended to July 15, then to July 31.

The cash purchase will make Ahold the fifth-largest U.S. supermarket company and boost its sales to $35 billion, from $26 billion last year.

"We have to keep extending the offer until we get final approval" from the U.S. Federal Trade Commission, said Fons Schmid, an Ahold spokesman.

Ahold gained control of Landover-based Giant by agreeing to buy all voting shares of 1224 Corp., a holding company controlled by Giant executives, and J Sainsbury PLC, Britain's second-largest supermarket company.

Ahold said about 48.5 million Class A nonvoting shares out of 59.9 million have been tendered, according to the Bank of New York, the depositary for the offer.

Schmid said FTC approval is expected soon.

Pub Date: 8/04/98

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