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A&P, Pathmark Enter into Extension of Timing Agreement with the FTC
MONTVALE, N.J. - (September 20, 2007) - The Great Atlantic & Pacific Tea Company, Inc. (A&P) (NYSE:GAP) announced today that, based upon the progress in its discussions with the Federal Trade Commission ("FTC"), A&P and Pathmark Stores Inc. (Pathmark)(NASDAQ:PTMK) have entered into an agreement with the FTC pursuant to which they agree to provide the FTC notice of their intention to consummate A&P's acquisition of Pathmark at least two weeks prior to closing such transaction. A&P and Pathmark further agreed to give such notice to the FTC no sooner than October 5, 2007.
As previously disclosed, both Tengelmann (A&P's majority shareholder) and Pathmark received Second Requests from the FTC on April 18, 2007, and subsequently entered into a timing agreement with the FTC. The issuance of the Second Requests effectively extended the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the "HSR Act"), during which A&P and Pathmark may not consummate the proposed acquisition. Under the timing agreement, A&P and Pathmark agreed, subject to certain conditions, that they would not consummate A&P's acquisition of Pathmark for at least 60 days following the date that A&P and Pathmark substantially comply with the Second Requests. A&P and Pathmark announced on July 16, 2007 that both parties had submitted certificates of substantial compliance to the FTC on July 13, 2007. A&P announced on August 8, 2007 that on August 7, 2007 A&P and Pathmark had entered into an agreement with the FTC providing that, subject to certain conditions, A&P and Pathmark would not consummate A&P's acquisition of Pathmark prior to 11:59 p.m. on September 25, 2007.
A&P and Pathmark are continuing to cooperate with the FTC.
Founded in 1859, A&P is one of the nation's first supermarket chains. The Company operates 337 stores in 8 states and the District of Columbia under the following trade names: A&P, Waldbaum's, The Food Emporium, Super Foodmart, Super Fresh,
Sav-A-Center, and Food Basics.
This release contains forward-looking statements about the future performance of the Company, which are based on Management's assumptions and beliefs in light of the information currently available to it. The Company assumes no obligation to update the information contained herein. These forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially from such statements including, but not limited to: competitive practices and pricing in the food industry generally and particularly in the Company's principal markets; the Company's relationships with its employees and the terms of future collective bargaining agreements; the costs and other effects of legal and administrative cases and proceedings; the nature and extent of continued consolidation in the food industry; changes in the financial markets which may affect the Company's cost of capital and the ability of the Company to access capital; supply or quality control problems with the Company's vendors; and changes in economic conditions which affect the buying patterns of the Company's customers.
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Investor Contact:
William J. Moss
Vice President, Treasurer
(201) 571-4019
Press contact:
Richard P. De Santa
Senior Director, Communications
(201) 571-4495
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