SUNBURY, Pa. -- Weis Markets here said last week it continues to review strategic alternatives to enhance shareholder value but has ruled out the possibility of a sale, a decision that does not sit will with a voluble group of company shareholders.
e the possible sale of our company."
He added, as had been previously reported, the "comprehensive and thorough [review] concluded that the sale of Weis Markets was not in the best interests of all Weis Markets shareholders."
A group of shareholders, however, voiced its displeasure with the review and its results in a filing with the Securities and Exchange Commission the day before the annual meeting.
The shareholder group, which calls itself the Shareholders Committee, consists of a faction of the Weis family headed by Janet C. Weis, the widow of Sigfried Weis, former company chairman and president as well as cousin to Robert Weis. The Janet Weis faction controls 41% of Weis Markets stock although it is no longer involved in the day-to-day management of the company.
The SEC filing said that although the company has said it would pursue "transactions other than the sale of the company," Weis Markets "did not, and has not, stated what those other transactions might be."
The filing called on the company to appoint at least two additional "independent, qualified directors" to its board and to move "much more aggressively to investigate all options for increasing shareholder value."
At the meeting, Robert Weis replied to the Shareholders Committee's criticism of the company's review of strategic options. "While we know there are those who do not like the results like the results of this review," he said, " to call in question the review process is to ignore the hard facts. Moreover, we are continuing to aggressively examine other options, including acquisitions and a stock repurchase."
Weis also said at the meeting the company plans to invest $135.6 million to open 17 superstores and remodel or expand 20 existing stores over the next 18 months. In 1999, Weis Markets opened nine and expanded or remodeled six superstores.
Moreover, he said the company intends to continue acquiring stores. The company acquired or re-opened eight units last year, four from Penn Traffic Co., Syracuse, N.Y., and four from Fleming, Oklahoma City.
"If you look closely at our operating performance last year, you will see the underlying strength of our company," said Weis. "We attribute our strong performance in large measure to the continued success of our expansion program, increased promotional spending and targeted marketing in key areas."
