Ahold buys up Net grocer

Dutch supermarkets group Koninklijke Ahold NV said on Monday it will launch a tender offer for the remaining outstanding 42 per cent of its Internet grocery unit Peapod Inc. Ahold​said it will offer $2.15 per share, a 72 per cent premium on Peapod's Friday closing price of $1.25 on the Nasdaq. Ahold said the $35 million transaction is to be followed by a merger of Peapod with a subsidiary of Ahold. Ahold currently holds a 58 per cent stake in Peapod. The acquisition is expected to have an almost neutral impact on Ahold's earnings per share in 2001, the company said. The tender offer is expected to be completed in the third quarter of 2001, after which Ahold will acquire all remaining publicly held shares of Peapod through a merger transaction at the same price per share, and Peapod will be delisted from the Nasdaq. On Friday, Peapod competitor Webvan Group Inc. and three affiliates filed for Chapter 11 bankruptcy protection and ceased operations.