MINNEAPOLIS -- Nash Finch here said last week it hopes to seek shareholder approval to authorize additional shares -- possibly as a way of doing a stock split to achieve greater liquidity, one observer told SN. The company said it has filed a proxy with the Securities and Exchange Commission asking for authorization to double the number of common shares outstanding to 50 million. It said the purpose of increasing the number of outstanding shares is to provide flexibility for a variety of business purposes, including selling stock to obtain additional capital; issuing stock to acquire other companies, businesses or assets; and declaring future stock dividends and stock splits. George Dahlman, a securities analyst with U.S. Bancorp Piper Jaffray here, told SN that, once Nash Finch is able to issue additional stock, it can decide to increase liquidity by splitting the stock in the form of a dividend, "which is perceived by retailer shareholders as an indication the company is doing well."
