Supervalu to Divest 20 Stores
Minneapolis, Supervalu, based in Minneapolis, is selling 20 of its Pittsburgh Shop ‘n Save stores, citing increased competition combined with rising gas prices as the reasons for the impending sales.
According to Supervalu, the affected stores will likely remain Shop ‘n Saves as it hopes to sell them to existing independent operators.
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.