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Shareholders File Suit in Winn-Dixie Buy

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.

Jon Springer, Executive Editor

December 23, 2011

1 Min Read
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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.

About the Author

Jon Springer

Executive Editor

Jon Springer is executive editor of Winsight Grocery Business with responsibility for leading its digital news team. Jon has more than 20 years of experience covering consumer business and retail in New York, including more than 14 years at the Retail/Financial desk at Supermarket News. His previous experience includes covering consumer markets for KPMG’s Insiders; the U.S. beverage industry for Beverage Spectrum; and he was a Senior Editor covering commercial real estate and retail for the International Council of Shopping Centers. Jon began his career as a sports reporter and features editor for the Cecil Whig, a daily newspaper in Elkton, Md. Jon is also the author of two books on baseball. He has a Bachelor of Arts degree in English-Journalism from the University of Delaware. He lives in Brooklyn, N.Y. with his family.

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