JACKSONVILLE, Fla. — A law firm here has filed suit here on behalf of Winn-Dixie shareholders it says would be getting less than the company is worth in its recently announced deal with Bi-Lo.
The suit names an individual shareholder “and others similarly situated” as plaintiffs and Winn-Dixie; its chairman and chief executive officer, Peter Lynch; and eight other Winn-Dixie board members as defendants. It also named Opal Holdings, Bi-Lo’s holding company for the merger, as a defendant.
It argues that Bi-Lo’s $9.50 per share offer from Bi-Lo represents a “grossly inadequate” value for Winn-Dixie and that the offer included deal protection devices making the board reluctant to pursue superior offers.
A Winn-Dixie spokesperson wasn’t immediately available for comment.