Filed by HomeGrocer.com, Inc.
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: HomeGrocer.com, Inc.
Commission File No. 000-29789
E-Mail communication posted on HomeGrocer.com intranet on July 11, 2000.
TO: All HomeGrocer.com Associates
FROM: Dave Pace
SUBJ: Merger Update #1
DATE: July 10, 2000
As we try to keep everyone up to speed with our progress toward the completion
of the merger, the following is a recap of last week's activities. We will try
to continue these updates on a regular basis as more information becomes
available.
1. Transition Teams
In order to begin the planning process for the activities that will need to
occur post-closing, a multi-functional transition team was formed involving
representatives from both Webvan and HomeGrocer.com. This transition team
will be co-chaired by Rex Carter from HOMG and Viveck Joshi from WBVN.
The purpose of the transition team is to identify the processes, systems
and organizations that will need to be integrated post-merger and then
outline a work plan which will allow the two companies to complete this
integration as soon as possible following the closure of the deal. The
activities completed last week centered largely around the identification
of issues that would need to be addressed.
These teams will next meet as a group in a couple of weeks.
2. FTC Filing
As required by law, the details of the proposed merger were filed with the
Federal Trade Commission on Monday, July 10th. The purpose of this filing
is for the government to have the opportunity to do an initial review of
the proposed merger for anti-trust compliance and to then give the approval
for the two companies to combine.
During this review period, which is expected to take approximately 30
days, each company must continue to operate and make business decisions
independently of one another. The parties may not coordinate their
business decisions prior to the termination of this waiting period.
3. Seattle Recruiting
Many of you in Seattle may have seen the Webvan advertisements in this
weekend's paper soliciting candidates for their upcoming opening of the
Kent facility. It was important for Webvan to begin their hiring process in
order to be prepared for their scheduled opening later this fall.
While many people may be concerned that this activity could prevent the
opportunity for HomeGrocer associates to obtain positions in the Seattle
operations post-merger, the reality is that even after the closure of the
deal, the size of Webvan facilities will still require several hundred
additional associates to be added in Seattle. WBVN and HOMG will be setting
up a process by which current HomeGrocer associates will be able to discuss
the possibility of moving to these opportunities in Kent and surrounding
facilities post-merger.
4. Peachnet Q&A
Answers to merger questions posted on Peachnet are beginning to be added to
the site. Additional answers will continue to be added to the site as soon
as possible after the questions are received. There are several reasons for
the delay in answering these. First, we were initially overwhelmed by a
large number of questions from those who posted on the site. Second, we had
to identify a cross-functional team that could develop answers to as many
questions as we possibly could. Third, for many of the questions that were
asked, we just don't have answers to them at this time. Thanks for your
patience in waiting for these answers.
We will continue to try to keep everyone updated as often as possible and
whenever significant new information is received. Until then, feel free to
continue to ask questions of your supervisor, your People Capability
Manager or post your question on Peachnet and it will be answered as fast
as we can.
Thanks for your continued commitment.
