American Stores Sues Lucky Over Anti-Takeover Tactics
American Stores on Friday filed suit against Lucky Stores, its takeover target, in a move to block that company’s anti-takeover defenses.
In a suit filed in Los Angeles federal court, American--owner of the Alpha Beta supermarket chain--wants a federal judge to block Lucky from using any anti-takeover tactics. American also seeks to have the anti-takeover laws in Florida and Delaware declared unconstitutional. Lucky is incorporated in Delaware.
In its suit, American--which has bid $1.7 billion for the 483-store Lucky chain--says Lucky’s anti-takeover plans favor the views of incumbent management without considering the opinions and interests of shareholders.
American also claimed that Delaware laws that allow anti-takeover provisions restrict free trade by “imposing unreasonably burdensome restrictions and prohibitions upon the national market for securities.”
Lucky executives said they had not yet seen the suit and declined to comment. American Store officials were not available for comment.
American, based in Salt-Lake City, owns more than 1,500 stores, including Osco drug stores.
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