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P.M. BRIEFING : Gateway PLC Offered $3.48-Billion

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<i> From Times wire services </i>

A group led by U.S. corporate financiers Wasserstein Perella & Co. said today it has made a friendly $3.48-billion cash offer for Gateway Corp. PLC in what would be Europe’s largest leveraged buyout.

The group, which also includes Great Atlantic & Pacific Tea Co. and is known as Newgateway PLC, said it had gained control of 30.04% of the British food retailer following a market raid on Friday.

Gateway also is the target of a hostile $3.32-billion cash bid from Isosceles PLC, a company formed by disgruntled institutional shareholders in Gateway. Isosceles last reported controlling about 41% of Gateway’s shares.

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Newgateway said it acquired a 19.66% stake on the open market, raising the total number of shares under its control to 267.8 million. Friday’s purchases were made at $3.92 a share.

This afternoon, Gateway shares were unchanged at $3.89 on London’s Stock Exchange.

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