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American Stores still can push ahead with its legal efforts to merge its Alpha Beta and Lucky divisions, but analysts expect the company to try to settle its dispute with California Atty. Gen. John K. Van de Kamp. The cost of waging the court battle and operating the chains separately is said to be weakening the company’s will to fight. Under a settlement, American probably would have to sell some stores in Southern California, which include 185 Lucky operations and 175 Alpha Beta outlets.


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