From Code to Community: Sponsoring The Perl and Raku Conference 2025 Learn more

DART SAID LIKELY SUPERMARKETS GENERAL SUITOR
Dart Group <DARTA> is likely seeking to
buy Supermarkets General <SGL>, analysts said.
"There's been rumors that they've taken a position in the
company, said Wood Gundie analyst Edward Comeau.
Last year, Dart Group, owner of Auto Trak INc and Crown
Books, competed against Kohlberg, Kravis to acquire Safeway
Stores INc.
The company later reached an accord under which it would
buy 20 pct of the company after Kohlberg Kravis completed its
leveraged buyout of the company.
The company later sold its 20 pct stock for about 180 mln
to 200 mln dlrs, according to analysts.
Dart Group Corp was not immediately available for comment.
Jerry Ballan, analyst with Conner Ballan division of Edward
Viner and Co, said, "They <Dart> has been rumored to be buying
some other supermarkets as well, such as Stop and Shop."
"My guess is that Supermarkets General does not want to be
bought out," said Ballan.
Analysts, however, said Supermarkets General is facing
problems due to its Purity Supreme and Rickels operations,
which might make it difficult to thwart a bid.
Supermarkets General is expected to report about 1.70 dlrs
a share compared to a 1.73 dlrs a share reported for 1985 on a
post stock split basis.
For the first quarter, Comeau predicts the company will
earn 39 cts a share from 35 cts a share a year ago, and should
earn about 2.05 dlrs for 1987.
"But that estimation could go to a 1.80 dlrs easily, due to
Purity Supreme in New England," Comeau said.
He said competition among supermarkets is getting heated in
that area and that the company has had difficulty with
integrating Purity Supreme with its Pathmark store operations.
Rickels, a home center business, has faced problems due to
the state of that industry, and has reported lower returns as
an operating unit, according to analysts.
Analysts said that if Dart buys Supermarkets General it
would probably divest the company's operations.
Analyst Comeau said "supermarkets general may seek a
combination with another supermarket company."