MONTVALE, N.J. — A&P here said it would shed the remainder of its ownership stake in Canadian retailer Metro to fund its pending purchase of Pathmark and avoid — or at least delay — the need to raise money in the debt markets to fund the deal. Traders on Tuesday, however, seemed intent on lowering the value A&P could get for its 11.7 million shares, with the stock dropping to a 52-week low following the announcement late Monday and bringing the value of the shares from around $435 million Friday to around $386 million Tuesday. A&P said its has entered into an agreement with TD Securities whereby TD will offer to purchase the shares on or prior to Nov. 28 at a price to be determined. A&P had acquired around 15% of Metro as part of its deal to sell its Canadian stores to the Montreal-based retailer in 2005. It sold around one-third of those shares earlier this year, also in connection with the Parkmark deal. Analysts said Tuesday the deal would benefit A&P by enabling it to forgo debt and interest expense as it commences the Pathmark acquisition, which is set to close before the end of the year.
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