Southland

Grocery Merger Deadline Looms: Bondholders will respond by Friday to sweeter terms under which they can swap their holdings for bonds to be issued by a new merged supermarket company. The proposed bond swap is the first step in a plan by Food 4 Less Supermarkets--operator of Alpha Beta and other chains--to secure the financing to acquire Ralphs Grocery Co. Food 4 Less is not expected to issue $400 million in new bonds needed to complete the acquisition unless at least 80% of current bondholders of the two companies agree to swap $450 million in existing bonds. Negotiators for the supermarkets last week raised their bid after many bondholders rejected previous interest rate payment and fee offers.