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CARTERET, N.J. -- The Yucaipa deal still stands. Pathmark Inc. said yesterday that its board Tuesday rejected an offer to buy the Carteret, N.J.-based chain for $8.75 a share from an unnamed private equity group.
According to a definitive proxy filed with the Securities and Exchange Commission, Pathmark said the proposal was rejected because it wouldn't reasonably be expected to result in a "superior proposal" compared to its proposed deal with Los Angeles-based investment firm Yucaipa.
Pathmark also said Thursday the board reconfirmed its recommendation of the proposed transaction with Yucaipa.
In the filing, Pathmark said the unnamed suitor previously had raised its offer to $8.30 a share from $8.25 a share, on May 8.
Yucaipa agreed last March to take a minority stake in Pathmark, for $150 million. As part of the deal, Yucaipa said it would purchase 20 million newly issued shares, or about 40 percent of Pathmark Stores stock, and also buy rights to another 25.1 million shares.