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A&P financing Pathmark deal with Metro shares


MONTVALE, N.J. A&P announced today that in order to finance and expedite its merger with Pathmark Stores, it intends to sell all of its 11.7 million shares of Metro prior to the closing of the merger.

A&P said that expects to use the proceeds from the Metro Shares to help finance the merger, assuming the shares are sold before Nov. 30. Based upon the closing price of the Metro shares on the Toronto Stock Exchange on Nov. 2, the value of the Metro shares totaled approximately $435 million. 

A&P said that TD Securities has agreed to offer to purchase, on or prior to Nov. 28, all of the Metro shares, at a price to be determined based on the market price for the Metro shares on the Toronto Stock Exchange on the trade date, subject to among other things there not having occurred a material adverse change in Metro that materially adversely affects the marketability of the Metro shares. A&P said that if it cannot sell the Metro shares, it intends to finance the merger utilizing other committed financing including borrowing under the bridge facility or an offering of senior secured notes in lieu thereof.

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