RETAILING

Grand Union to Sell Stake to Shamrock for $100 Million: The investment group led by Roy Disney agreed to buy Grand Union Inc. for convertible preferred stock, giving it control of one of the Northeast’s largest supermarket chains. Burbank-based Shamrock Group Inc. and its partner, General Electric Co.’s pension funds, are betting they’ll be able to turn around the long-troubled grocer, which emerged from bankruptcy in June 1995. Wayne, N.J.-based Grand Union will use the cash to renovate its 229 aging stores twice as quickly as it could on its own, spending $240 million over three years. Grand Union shares rose 50 cents to $6.50 on Nasdaq. The shares have fallen 59% in the last year. The company’s 12% junk bonds due in 2004 rose 3.7% to 98 cents on the dollar. Shamrock will lead the investment group, which will be able to name a majority of Grand Union’s directors.