Time To Tender Sobeys

Article Excerpt

SOBEYS INC. $58 (Toronto symbol SBY; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 64.9 million; Market cap: $3.8 billion; SI Rating: Average) shot up after its corporate parent, Empire Co., launched a $58.00-a-share takeover offer for the company. Based on our initial recommendation price of $36 in April 2003, the offer represents a 61.1% gain. A majority of Sobeys shareholders, excluding Empire’s 72.1% stake, have voted in favour of the offer. Empire aims to complete the takeover in the next few weeks. Sobeys investors should tender their shares to receive the full $58.00 without paying brokerage fees. …