New Bid for Marsh Supermarkets

The deal would be worth $13.625 a share.
Author:
Publish date:

Marsh Supermarkets

(MARSA)

surged more than 20% after the Indianapolis-based grocery chain got a new takeover offer.

The company said it received an unsolicited letter, dated May 22, from Drawbridge Special Opportunities Advisors and Cardinal Paragon in which the firms say they want to acquire Marsh for $13.625 a share.

Earlier this month, Marsh agreed to be acquired by MSH Supermarkets Holding, an affiliate of Sun Capital Partners. That proposal valued Marsh at $11.125 a share.

MSH is willing to let Marsh deal with Drawbridge and Cardinal, if it agrees to certain conditions, including reimbursing MSH for transaction expenses. Marsh said it rejected MSH's conditions.

Shares of Marsh were jumping $2.34, or 21.5%, to $13.25. The stock has traded in a range of $5.56 to $14.50 in the last year.