Empire Offers Big Premium to Take Sobeys Private

STELLARTON, Nova Scotia Canadian grocery industry observers were waiting for another shoe to drop following Empire Co.'s announcement that it would buy the shares of Sobeys it did not already own at a 53% premium and take the retailer private. The deal, which one analyst called left observers speculating how Empire would fund the nearly $1 billion (U.S.) purchase, which values Sobeys stock at $58

STELLARTON, Nova Scotia — Canadian grocery industry observers were waiting for another shoe to drop following Empire Co.'s announcement that it would buy the shares of Sobeys it did not already own at a 53% premium and take the retailer private.

The deal, which one analyst called “stunning,” left observers speculating how Empire would fund the nearly $1 billion (U.S.) purchase, which values Sobeys stock at $58 (Canadian) a share at a time it was trading at around $38 a share. A

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