U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 3
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(f) of the Investment Company Act of 1940
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1. Name and Address of Reporting Person*
American Stores Company
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(Last) (First) (Middle)
299 South Main Street
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(Street)
Salt Lake City Utah 84111
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(City) (State) (Zip)
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2. Date of Event Requiring Statement (Month/Day/Year)
August 2, 1998
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3. IRS or Social Security Number of Reporting Person (if an entity)
87-0207226
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4. Issuer Name and Ticker or Trading Symbol
Albertson's, Inc. (Symbol NYSE:ABS)
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5. Relationship of Reporting Person to Issuer
(Check all applicable)
[ ] Director [ X ] 10% Owner
[ ] Officer (give title below) [ ] Other (specify below)
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6. If Amendment, Date of Original (Month/Year)
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7. Individual or Joint/Group Filing (Check applicable line)
[ X ] Form Filed by One Reporting Person
[ ] Form Filed by More than One Reporting Person
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Table I -- Non-Derivative Securities Beneficially Owned
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3. Ownership Form:
2. Amount of Securities Direct (D) or
1. Title of Security Beneficially Owned Indirect (I) 4. Nature of Indirect Beneficial Ownership
(Instr. 4) (Instr. 4) (Instr. 5) (Instr.5)
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</TABLE>
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
Page 1 of 5
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FORM 3 (continued)
Table II -- Derivative Securities Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
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5. Owner-
3. Title and Amount of Securities ship
Underlying Derivative Security Form of
2. Date Exercisable (Instr. 4) Derivative
and Expiration Date --------------------------------- 4. Conver- Security:
(Month/Day/Year) Amount sion or Direct 6. Nature of
---------------------- or Exercise (D) or Indirect
Date Expira- Number Price of Indirect Beneficial
1. Title of Derivative Exer- tion of Derivative (I) Ownership
Security (Instr. 4) cisable Date Title Shares Security (Instr.5) (Instr. 5)
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<S> <C> <C> <C> <C> <C> <C> <C>
Option (contingent (see (see Common Stock 48,800,000 $48.00 D
right to buy)(see attached) attached)
attached)
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</TABLE>
Explanation of Responses:
(See attached) (See attached)
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**Signature of Reporting Person Date
Page 2 of 5
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FORM 3 CONTINUATION SHEET
ITEM 1: AMERICAN STORES COMPANY
299 SOUTH MAIN STREET
SALT LAKE CITY, UTAH 84111
ITEM 2: AUGUST 2, 1998
ITEM 4: ALBERTSON'S, INC. (NYSE: ABS)
EXPLANATION OF RESPONSE
This Initial Statement of Beneficial Ownership on Form 3 (this "Form")
is filed by American Stores Company, a Delaware corporation ("American Stores").
On August 2, 1998, Albertson's, Inc. ("Albertson's"), Abacus Holdings, Inc., a
wholly owned subsidiary of Albertson's ("Merger Sub"), and American Stores
entered into an Agreement and Plan of Merger (the "Merger Agreement") providing
for, among other things, the merger of Merger Sub with and into American Stores
(the "Merger"). In connection with the Merger, American Stores entered into a
Stock Option Agreement (the "Albertson's Option Agreement"), dated as of August
2, 1998, with Albertson's. Pursuant to the Albertson's Option Agreement,
Albertson's granted American Stores an option (the "Albertson's Option") to
purchase up to 48.8 million shares of Common Stock, par value $1.00 per share,
of Albertson's ("Albertson's Common Stock") at an exercise price of $48.00 per
share; provided that in no event will the number of shares for which the
Albertson's Option is exercisable exceed 19.9% of the shares of Albertson's
Common Stock issued and outstanding at the time of exercise (without giving
effect to the shares of Albertson's Common Stock issued or issuable under the
Albertson's Option).
The Albertson's Option is exercisable at any time following the
occurrence of a Triggering Event (as defined below). The Albertson's Option
expires upon the occurrence of any of the following: (i) the effective time of
the Merger; (ii) if American Stores has given Albertson's written notice
pursuant to the terms of the Albertson's Option of its intention to exercise the
Albertson's Option, the day that is 120 days after the receipt by Albertson's of
such notice; or (iii) if American Stores has not given Albertson's written
notice pursuant to the terms of the Albertson's Option of its intention to
exercise the Albertson's Option, the close of business on the date of the
earliest to occur of (a) the day that is 120 days after the date of a Triggering
Event, (b) the date upon which the Merger Agreement is terminated if no
Termination Fee (as defined below) could be payable by Albertson's pursuant to
the terms of the Merger Agreement upon the occurrence of certain events or the
passage of time, and (c) 270 days following the date upon which the Merger
Agreement is terminated.
A "Triggering Event" is any of the events giving rise to the
obligation of Albertson's to pay American Stores a $240 million fee under
Section 8.2 of the Merger Agreement (a "Termination Fee"). These events include
the following: (i) Albertson's terminates the Merger Agreement prior to the
approval by Albertson's stockholders of the issuance of shares in connection
with the Merger solely in order to concurrently enter into a definitive
agreement with respect to a third party proposal that is financially superior to
the Merger; provided that Albertson's may only so terminate the Merger Agreement
if the Board of Directors of Albertson's concludes in good faith, after
considering applicable state law and after consulting with outside counsel, that
in light of such third party proposal, such action is required in order to act
in a manner consistent with its fiduciary duties under applicable law; (ii)
American Stores terminates the Merger Agreement by reason of the failure of the
stockholders of Albertson's to approve of the issuance of shares in connection
with the Merger, and prior to such stockholders' meeting, a third party has made
public a proposal with respect to a business combination transaction involving
Albertson's, and within six months of the termination of the Merger Agreement,
Albertson's enters into an agreement with respect to or consummates a business
combination transaction with any third party; (iii) American Stores terminates
the Merger Agreement as a result of Albertson's Board of Directors having (w)
withdrawn or modified in any manner adverse to American Stores, its approval or
recommendation to stockholders in connection with the Merger, (x) failed to
reaffirm its approval or recommendation of the issuance of shares pursuant to
the Merger within 15 days of American Stores' request, after a third party has
proposed or offered to acquire a material interest in Albertson's or its
businesses, (y) approved or recommended any such proposal, or (z) resolved to do
any of the foregoing; or (iv) American Stores terminates the Merger Agreement as
a result of an intentional breach by Albertson's of its representations,
warranties and covenants, after a third party has made public a proposal with
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FORM 3 CONTINUATION SHEET
ITEM 1: AMERICAN STORES COMPANY
299 SOUTH MAIN STREET
SALT LAKE CITY, UTAH 84111
ITEM 2: AUGUST 2, 1998
ITEM 4: ALBERTSON'S, INC. (NYSE: ABS)
respect to a business combination transaction involving Albertson's, and within
six months after such termination, Albertson's enters into an agreement with
respect to or consummates a business combination transaction with any third
party.
The Albertson's Option Agreement also contains certain "put" features,
registration rights and a limitation on the total profit that American Stores
may receive pursuant to the put right and the sale or transfer to a third party
of shares of Albertson's Common Stock acquired pursuant to an exercise of the
Albertson's Option combined with all amounts paid or payable (and not refunded)
by Albertson's to American Stores pursuant to Section 8.2 of the Merger
Agreement. The limit is $360 million.
Prior to the Albertson's Option becoming exercisable and being
exercised, American Stores expressly disclaims beneficial ownership of the
shares of Albertson's Common Stock which are purchasable by American Stores upon
the Albertson's Option becoming exercisable and being exercised. Neither the
filing of this Form 3 nor any of its contents shall be deemed to constitute an
admission that American Stores is the beneficial owner of the shares of
Albertson's Common Stock subject to the Albertson's Option for purposes of
Section 13(d) or 16 of the Securities Exchange Act of 1934, as amended, or for
any other purpose and such beneficial ownership is expressly disclaimed.
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FORM 3 CONTINUATION SHEET
ITEM 1: AMERICAN STORES COMPANY
299 SOUTH MAIN STREET
SALT LAKE CITY, UTAH 84111
ITEM 2: AUGUST 2, 1998
ITEM 4: ALBERTSON'S, INC. (NYSE: ABS)
SIGNATURES OF REPORTING PERSONS
Dated: August 12, 1998
AMERICAN STORES COMPANY
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By: /s/ Kathleen E. McDermott
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Name: Kathleen E. McDermott
Title: Chief Legal Officer
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