Marsh Shareholder Bemoans Sale Price

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Marsh Shareholder Bemoans Sale Price

08/30/2006
INDIANOPOLIS -- Although Marsh Supermarkets Inc. is poised to proceed with its deal to be acquired by Florida-based Sun Capital come September, one of the chain's large shareholders has voiced strong dissention against the alliance, according to a report by Progressive Grocer, a sister publication to Convenience Store News.

Braden M. Leonard, managing member of the Indianapolis-based BML Investment Partners, L.P., wrote in a filing with the U.S. Securities and Exchange Commission (SEC): "I do not believe that the $11.125 per share transaction fully reflects the asset value of our company, as my analysis yields an asset value of . . . $22-$28 per share.

BML, which owns about 5 percent of Marsh's B-class shares -- making it the fourth-largest shareholder -- accumulated more than 80,000 additional shares between June 26 and Aug. 18, following Marsh's disclosure that it signed a deal with Sun and subsequently said it had another suitor, New York-based Drawbridge Special Opportunities Advisors and a partner, Cardinal Paragon Inc.

Leonard said in the SEC filing, a substantial gap exists between the Sun offer and the book value for Marsh, operator of Village Pantry convenience stores. As such, he said he plans to vote against the deal, which is expected to be sealed at a Sept. 22 meeting, and has already survived an auction and another shareholder lawsuit.

Marsh Supermarkets, based in Indianapolis, operates 154 Village Pantry c-stores, 69 supermarkets, 38 LoBill Foods stores and eight O'Malia Food Markets.