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Update 21:35: Adds Albertson’s comment.
Albertson Cos. (NYSE:ICA) may pay a $4 billion dividend announced in conjunction with its plans to merge with Kroger (New York Stock Exchange:KR) after a Washington state Supreme Court denied a request for review of a judgment that allowed the payment of the dividend. albertsons increased 3.2% in the trade after hours.
The Washington Supreme Court held a special conference of the floor to review the motions Tuesday and the majority rejected both motions, according to a judicial opinion. With the Supreme Court case concluded, the extension of the temporary restraint was officially ended.
Albertsons (ACI) will immediately begin the process of paying the special dividend and the amounts will be distributed as soon as possible to shareholders of record at the close of business on October 24, the supermarket chain said in a statement late Tuesday. .
Last month, a Washington state judge denied a preliminary injunction preventing Albertsons (ACI) from paying the dividend. on November 7. The lawsuit in Washington accused the two companies of violating antitrust and consumer protection laws.
“We are disappointed to see a ruling favoring a small number of ultra-wealthy shareholders over the many thousands of essential workers and millions of Americans who will suffer the consequences of Albertsons’ total financial looting.” The local UFCW unions said in a statement emailed to Seeking Alpha on Tuesday night.
A judge in Washington, DC in November also ruled that Albertsons (ACI) can proceed with the special dividend payment. US District Judge Carl Nichols denied a request by the attorneys general of California, Illinois and Washington DC to temporarily block the dividend.
Last month Earlier this month, Kroger (KR) received a request from the Federal Trade Commission for additional information regarding its planned $24.6 billion purchase of rival supermarket chain Albertsons.
