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Strategies & Market Trends : AMIGOS INVITATIONAL YEEHAW PORTFOLIO -- Ignore unavailable to you. Want to Upgrade?

To: RCJIII who wrote (467)	6/17/1999 8:37:00 PM
From: Sergio H	Respond to of 1316

ADRN Thanks for the update RC. AS

To: RCJIII who wrote (467)	6/18/1999 12:52:00 PM
From: Sergio H	Read Replies (1) \| Respond to of 1316

NEW YORK, June 18 (Reuters) - Discount chain Kmart Corp. could be a takeover target for a grocery store chain following Wal-Mart Stores Inc.'s $10.8 billion deal to buy Britain's ASDA Group, Business Week said in its Inside Wall Street column. A New York money manager, who was not identified, told the magazine that Kmart, which has 2,000 stores and is increasing its presence in food retailing with its Big K stores, could get $30 a share in a buyout. Kmart, which had $33.7 billion of sales the previous fiscal year, closed at 15-5/16 on Thursday. Merrill Lynch analyst Daniel Barry believes "a partnership with a supermarket chain continues to be a possibility," the magazine said. He figures the stock is worth $28 a share because of the turnaround of its operations with nearly all of its stores converted to the Big K format. The unnamed money manager told the magazine that Kmart Chief Executive Floyd Hall may be looking to please shareholders with a buyout deal. The magazine said Safeway Inc. (Nyse:SWY) and Kroger Co. (Nyse:KR) are seen as potential buyers under this scenario. Safeway, which had $24.5 billion in 1998 sales, and Kmart were not immediately available for comment. The magazine noted that Kroger, which recently bought Fred Meyer, may not be ready for another large acquisition. Quote for referenced ticker symbols: SWY, KR, KM © 1999, Reuters