Albertsons may pay dividends after Washington Supreme Court denies review request
Albertsons Company (NYSE:ACI) could pay a $4 billion dividend announced alongside a merger plan with Kroger (NYSE:KR) after the Washington State Supreme Court denied a request for reconsideration ab appeal the temporary ban that blocked the dividend. Albertsons up 3.2% in after-hours trading.
The Washington Supreme Court held a special conference to consider the petitions on Tuesday and a majority rejected both petitions, according to a statement. court opinion. When the Supreme Court case ended, the extension of the temporary restraining order officially ended.
A Washington state judge last month overturned a preliminary injunction preventing the Albertsons (ACI) from the payment of dividends. A Washington State Judge grant a temporary restraining order in November blocked Albertsons payments (ACI) A special dividend of $6.85 per share that should have been paid on Nov. 7. The lawsuit in Washington accuses the two companies of violating antitrust and consumer protection laws.
“We are disappointed to see a ruling that favors an extremely wealthy few shareholders over the thousands of essential workers and millions of Americans who will suffer the consequences of the Albertsons’ blatant financial robbery, “ UFCW’s local unions said in an emailed statement to Seeking Alpha on Tuesday night.
A judge in Washington, DC in November also ruled that the Albertsons (ACI) may proceed to pay special dividends. US District Judge Carl Nichols refuse request taken by attorneys general in California, Illinois, and Washington, DC to temporarily block dividends.
Last month Earlier this month, Kroger (KR) received a request from the Federal Trade Commission for additional information regarding the plan $24.6 billion to buy rival supermarket chain Albertsons.