Winn-Dixie Stores Climbs 70% at Opening Bell on Merger with BI-LO
Winn-Dixie Stores ( WINN ) opens Monday's regular session up 70% after climbing to just above 72% in the pre-market session, after the company announced that it will merge with BI-LO. WINN shareholders will receive $9.50 in cash per share of common stock, representing a premium of 75% over the closing price of its common stock on Dec. 16, 2011. The transaction is valued at $560 million.
The companies expect to continue operations under the BI-LO and Winn-Dixie banners after the merger is completed. The combination of the companies will create an organization with 690 grocery stores and 63,000 employees in eight states throughout the southeastern United States. No store closures are expected as a result of the merger.
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