Washington State AG Seeks To Block Albertsons' $4B Dividend Payout


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


  • Albertsons Companies Inc (NYSE:ACI) had a lawsuit filed against it by Washington State Attorney General Bob Ferguson to stop the grocery chain from paying shareholder dividends.
  • Albertsons had sought to pay $4 billion in dividends to its shareholders before the closing of its proposed merger with supermarket operator Kroger Co (NYSE: KR).
  • Ferguson argued that the special dividend payment risked severely undercutting the grocery giant's ability to compete during the lengthy period.
  • Government regulators, including Washington, will be scrutinizing the merger.
  • According to Securities & Exchange Commission filings, this $4 billion dividend exceeds Albertsons' cash on hand.
  • The grocery company plans to borrow the rest of the money required for paying its shareholders on November 7.
  • Albertsons and Kroger account for the vast majority of grocery stores in Washington, with 216 Safeway and Albertsons stores in the state and 114 Kroger-owned Fred Meyer and QFC stores.
  • The Attorney General will file a temporary restraining order on Tuesday or Wednesday, which, if granted, will block Albertsons from making the payment while Ferguson's lawsuit is ongoing.
  • RelatedKroger/Albertsons $25B Merger Might Face Antitrust Challenge
  • Price Action: ACI shares closed lower by 0.93% at $20.32 on Tuesday.
  • Photo Via Company

27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


ENTER TO WIN $500 IN STOCK OR CRYPTO

Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

Posted In: GovernmentM&ANewsRegulationsLegalGeneralBriefs