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INDIANAPOLIS – A bid of $13.625 per share, totaling more than $107 million, was rejected by Marsh Supermarkets because it violated the agreement it had with current suitor MSH Supermarkets Holding Corp., an affiliate of Sun Capital Partners Group IV, LP.
As reported in the Indianapolis Star, Marsh requested Sun Capital to let it consider the offer from competitors Cardinal Paragon Inc. and Drawbridge Special Opportunities Advisors LLC, but Sun Capital rejected.
Under the current agreement, Marsh is prohibited from entertaining any other offers without Sun Capital's consent. Also, Marsh must announce opposition to any competitor's bid within 10 days of receiving it or Sun Capital reserves the right to cancel the acquisition, which would cost Marsh a $10-million termination fee.
A written statement by Marsh Supermarkets noted the uncertainty of the second bid and the potential loss of Sun Capital's offer pushed the board of directors to oppose the higher offer.
Marsh announced in April that it accepted the offer of $11.125 per share, totaling approximately $88 million, from Sun Capital.
On the NASDAQ Stock Market, Marsh Supermarkets shares closed at $12.74 Monday. This is down from $13.20 when the second offer was announced, as reported by the Associated Press.
Marsh Supermarkets Inc. operates 69 supermarkets, 38 LoBill Foods stores, eight O’Malia Food Markets, and 154 Village Pantry convenience stores.