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Strategies & Market Trends : Value Investing
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To: E_K_S who wrote (20886)1/23/2006 2:22:37 PM
From: E_K_S  Read Replies (1) of 78676
 
January 23, 2006 07:22 AM
Albertsons inks dell to sell
(http://bizneworleans.com/109+M5ff7c6330e5.html )
From the article:"...Albertson's Inc. announced today that it has entered into a definitive agreement to sell the entire company to a consortium of investors for a total transaction value of approximately $17.4 billion in cash, stock and assumed debt, including the settlement of the Albertsons Hybrid Income Term Security units...."

"...Under the terms of the agreement, Albertsons shareholders will receive $20.35 in cash and a fixed exchange ratio of 0.182 shares of SUPERVALU stock for each Albertsons share, on a fully diluted basis...."

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What is good is that the deal provideds for the accelerated payment of the Hybrid Security Units (w/ dividends) at the $25 face value. These units were to have expired in May 2007 and would have been converted into common stock.

The Hybrid Units go xdividend 1-30-06, so I plan to sell my complete position sometime after this date.

I will hold onto my common shares and will take the cash settlement and maintain a small position in Supper Value stock (SUV).

The investment provided an OK return as my common shares returned 27% over three years and my Hybrid Units returned 13% over one year.

There is still quite a bit of hidden value in their real estate and now Kimco Realty Corp. (KIM finance.yahoo.com ) will work on bringing this value to it's shareholders.

EKS
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