Albertson’s 2Q Profit Smaller Than Expected
Boise, Idaho, Albertson’s Inc., which recently put itself on the selling block, posted a smaller-than-expected 3% gain in quarterly profit and said it would sell some property to cash in on the U.S. real estate boom.
Net profit rose to $107 million, or 29? a share, in the second quarter ended Aug. 4, vs. $104 million, or 28? a share, a year earlier. Total sales inched up to $10.2 billion from $10.17 billion a year ago. Same-store sales were down by 0.1%.
Albertson’s said capital spending would be between $1 billion and $1.1 billion this year, or $300 million less than it had originally expected, as it focuses on a smaller number of markets.
ShopKo Takeover Faces Still Opposition
New York City, The $1 billion takeover of ShopKo Stores Inc. by buyout firm Goldner Hawn Johnson & Morrison may be in jeopardy after proxy adviser Institutional Shareholder Services (ISS) recommended that stockholders vote against the proposed leveraged buyout.
The ISS recommendation follows similar calls by activist hedge fund investor John Levin, which owns 6% of ShopKo, and a group of other shareholders who have filed lawsuits against the company claming the $24 a share that Goldner Hawn has agreed to pay is too low.
Shareholders are scheduled to vote on the buyout on Sept. 14.
Electronics Boutique-GameStop Merger OKd
West Chester, Pa., Electronic retailers Electronics Boutique Holdings Corp., with 2,280 stores, and GameStop Corp., with 1980 stores, have announced that their proposed merger has been approved by federal regulators. Shareholders of both companies still have to cast their votes in the matter.
Combining the two companies will create a worldwide retailer with more than 4,000 locations.
Electronics Boutique trades primarily under the EB Games banner.