Harris Teeter Supermarket Merger May Be Challenged

Harris Teeter is to be acquired by Kroger Co. as part of a deal that valued the company at around $2.5 billion. As part of the terms, shareholders will receive $49.38 in cash for each share owned. A procedure exists, however, for shareholders to challenge the fairness of the merger agreement. Shareholders of HTSI may be able to seek legal recourse if they suspect that the merger’s procedure or terms are not in the company’s best interests.

The board of director of Harris Teeter has certain duties to shareholders that must be fulfilled throughout the acquisition process. Shareholders will be concerned with whether the price - $49.38 per share – is fair. It’s been reported that the price is only 2% higher than closing prices on the day before the announcement was made. State law allows shareholders to force management and directors to disclose more information. Questions may need to be answered about the board of directors, including whether they have acted fairly, independently, and transparently. Attorneys are currently investigating whether this merger is fair and whether the board has acted adequately, and are interested to hear from shareholders and those affected by the merger.

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