Bashas' rejects buyout offer from Albertsons

Phoenix Bashas', which filed for Chapter 11 bankruptcy protection in June, has rejected a buyout offer of at least $260 million from rival Albertsons.

Albertsons CEO Ralph Miller sent a letter including the offer to Bashas' chairman Eddie Basha Jr., early this month. It was revealed in a filing in U.S. bankruptcy court by lawyers representing lenders.

The lenders' filing said Bashas' hadn't disclosed it had been approached by Albertsons until the letter forced its hand.

The attorney for Bashas' said the offer was insufficient and the company is on track to emerge from bankruptcy in April.