•Press Release Private Equity
Washington — Albertsons will pay out about a third of its market value to its former private equity owners and investors as early as next month as part of the megamerger with Kroger, notes private equity expert Eileen Appelbaum. As of this writing, it is unclear if the payment, in the form of a special dividend, will go through if regulators halt the merger. What is clear, is that the future of Albertsons and its workers are being put at risk for private equity profit.
“Paying this special dividend sets Albertsons up for failure. Kroger would have a powerful defense of the merger, by arguing that Albertsons will face bankruptcy if the merger is not approved,” explained Appelbaum.
With the payment scheduled for November, “There is little time to lose. Payment of the dividend must be stopped before this coming Monday,” said Appelbaum.
