Lucky’s Suitor Warns Against Evasive Acts

American Stores, owner of Alpha Beta supermarkets, Tuesday fired a warning shot in its battle to take over Lucky Stores.

One day after his company offered $1.7 billion for Lucky, American Stores Chairman L. S. (Sam) Skaggs warned Lucky’s management not to try and thwart the takeover by buying another supermarket chain.

Skaggs, in a letter to Lucky’s directors, said: “We have heard various reports to the effect that, as a response to American Stores’ tender offer, Lucky Stores Inc. may be considering an acquisition which could interfere with the American Stores offer.”

In his second letter to Lucky in two days, Skaggs went on to say: “We assume that you will not attempt to frustrate the choice given to your shareholders through a defensive acquisition, or any other artificial mechanism.”

On Monday, Skaggs wrote Lucky to say that his Salt Lake City-based company is prepared to raise to $50 its $45-a-share bid if Lucky’s moves quickly to sign an agreement. On Tuesday, Skaggs said his company might be less willing to offer $50 a share if Lucky purchased another retailer. In fact, he said, American Stores might sell anything Lucky buys now.

Such a move, Skaggs said, “could negatively impact the price your shareholders will receive.”

Lucky officials have declined comment on Skaggs’ letters.

Lucky Stores--the nation’s sixth-largest food retailer, with about 500 stores in California, Arizona and Florida--has been known to be bidding for Ralphs supermarkets, being sold by Federated Department Stores.

Officials at American Stores--the nation’s third-largest food and drug retailer, with $14 billion in annual sales--would not say whether Tuesday’s letter was referring directly to Lucky’s bid for Ralphs or whether Lucky might be considering buying another supermarket chain. American Stores wants to merge its Alpha Beta chain with Lucky.