A&P, Pathmark enter into another timing agreement with FTC

By Lisa Kerner

Charlotte, N.C., Sept. 20 - The Great Atlantic & Pacific Tea Co., Inc. and Pathmark Stores, Inc. entered into an agreement with the Federal Trade Commission to provide the agency with notice of their intention to consummate A&P's acquisition of Pathmark at least two weeks prior to the transaction's close.

Both companies will not provide notice sooner than Oct. 5, according to a statement released on Thursday.

A&P's majority shareholder, Tengelmann Group, and Pathmark received second notices from the FTC on April 18.

On March 5, A&P agreed to acquire Pathmark for $1.3 billion in cash, stock and debt assumption or retirement. Pathmark shareholders will receive $9 in cash and 0.12963 of a share of A&P stock for each Pathmark share.

The transaction, which includes a one-year termination fee of $50 million, will result in a 550-store, $11 billion supermarket chain, an earlier news release stated.

A&P is based in Montvale, N.J., and operates 410 supermarkets in nine states and the District of Columbia.

Pathmark is a 141-store supermarket chain based in Carteret, N.J.

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