MONTVALE, N.J. -- A&P here said last month a shareholder has presented a motion that will be voted on at next month's shareholders' meeting that calls for the sale of the company.
hey support the prompt sale of [the company]."
Although the resolution is not binding even if approved by the shareholders, Steiner said he believes voting for the resolution would send a strong message to the company.
"A strong and/or majority vote by the shareholders would indicate to the board the displeasure felt by the shareholders of the shareholder returns over many years," Steiner said.
Steiner also noted that the sale of the company should be completed by any appropriate process, including cash, stock exchange or a combination of both.
The company's board issued a reply to Steiner's proposal, in which it states that a sale is against the best interests of the company.
"A prompt sale to the highest bidder would not necessarily enable stockholders to realize the true value of the company," the board's statement declared. "At times, a company's market value can be significantly different from its intrinsic value. The board believes that the long-term potential of the company is greater than the current market price," the statement reads.
The board also noted in its statement that a sale could harm relationships with vendors and employees, and could cause problems securing long-term contracts and, in turn, lower share value.