A&P, Pathmark in Merger Talks

Pathmark (PTMK Quote) is in talks to be acquired by fellow supermarket operator Great Atlantic & Pacific(GAP Quote).

In separate statements acknowledging the negotiations, the companies said the buyout price might be $12.50 a share in cash and A&P stock.

Pathmark shares closed Tuesday at $11.95. A&P shares surged $2.30, or 7.4%, to $33.17.

Both companies are based in New Jersey and operate grocery stores in the New York-New Jersey metropolitan area, though A&P has a greater reach. Pathmark has 141 supermarkets, while A&P owns 410 stores under names such as A&P, Food Emporium and Waldbaum's.

Any deal would be subject to a number of uncertainties, including regulatory approval, and the companies said there can be no certainty a deal will be reached.

The news comes less than a week after grocer Whole Foods (WFMI Quote) said it will acquire Wild Oats(OATS Quote) for $565 million.