Winn-Dixie Shareholders Balk At $560M Bi-Lo Merger

Law360, New York (January 23, 2012, 3:32 PM EST) -- Winn-Dixie Stories Inc.'s board was slapped with a putative shareholder class action Friday in Florida for alleged fiduciary breaches and securities violations in the grocery chain's looming sale to private equity firm Lone Star Funds, which owns Bi-Lo LLC.

The $9.50 per share that Winn-Dixie shareholders would receive as part of the $560 million deal is inadequate, and the consideration fails to properly incorporate “significant synergies” that the merger between the two Southern U.S. grocery chains will create, the 60-page complaint contends.

“The touted 75 percent...
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