Investor Asher B. Edelman renewed his proposal Wednesday to buy Lucky Stores for $37 a share, but the company responded with a terse reminder that the price had previously been rejected by its board as inadequate.
In a statement, the company added that it plans to proceed Friday with its tender offer to repurchase nearly 14.4 million shares, or 28% of its outstanding common stock, at $40 a share.
Along with the prices of a slew of other takeover targets, Lucky's stock price has been sliding this week. The shares closed down 62.5 cents at $32.125 in trading on the New York Stock Exchange on Wednesday.
Jeffrey Atkin, who follows Lucky for the Seattle money-management firm of Kunath, Karren & Rinne, noted that Edelman has had an opportunity "to buy a reasonable amount of stock at sub-$35 prices. . . . If he's able to get more on the open market at lower prices, he'd have the opportunity to lower his cost per share."