Washington AG rejected request for dividends
2022.12.12 05:46
Washington AG rejected request for dividends
Budrigannews.com – Albertsons Companies Inc., a grocery store chain in the United States, reported that the Washington State Court had rejected the state’s Attorney General’s request for a preliminary injunction to prevent the company from paying a special dividend of $4 billion to shareholders.
The company said late on Friday that the court has extended the current temporary restraining order until December 19 to give the Attorney General a chance to appeal.
According to a statement, it is awaiting a decision on the request for a second preliminary injunction against the previously announced dividend of $6.85 per share made on December 1 by the Attorneys General of California, Illinois, and the District of Columbia.
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“No legal basis for preventing the payment of a dividend,” Albertsons stated, “continues to believe” that the claims are meritless.
NYSE: Kroger in a $25 billion acquisition of Albertsons in October, as part of a massive merger between the No. 1 and 2 independent grocery stores, claiming that the deal would help them better compete with Walmart, the industry leader in the United States (NYSE:) regarding prices. On antitrust grounds, the planned acquisition has been harshly criticized.
As part of the regulatory review process for the planned merger, Kroger received a request for additional information from the United States Federal Trade Commission this month.
During the prolonged regulatory scrutiny, the dividend payout “risks severely undercutting the grocery giant’s ability to compete,” according to the Washington Attorney General.
Albertsons has maintained that the dividend would not harm the company and that it was in a strong financial position.
