A&P in Negotiations to Buy Pathmark

MONTVALE, N.J. -- A&P here is in negotiations to purchase rival Pathmark Stores, A&P said Tuesday, shortly after trading of its shares was halted on the New York Stock Exchange.

MONTVALE, N.J. -- A&P here is in negotiations to purchase rival Pathmark Stores, A&P said Tuesday, shortly after trading of its shares was halted on the New York Stock Exchange. In a statement, A&P said it was in discussions to acquire Pathmark at a “possible price” of $12.50 per share in cash and stock but made no assurances a deal could be reached. Including $618 million in Pathmark debt, the proposed offer would value Pathmark at around $1.27 billion. Industry observers have long anticipated a combination of retailers in the Northeast as a means of gaining scale, reducing costs and creating market leadership positions. A&P operates 410 stores in nine states, with 322 located between southern Connecticut and Washington, D.C. Pathmark, based in Carteret, N.J., operates 141 stores located between metro New York and Wilmington, Del. -- Jon Springer