Pink Sheet is part of Pharma Intelligence UK Limited

This site is operated by Pharma Intelligence UK Limited, a company registered in England and Wales with company number 13787459 whose registered office is 5 Howick Place, London SW1P 1WG. The Pharma Intelligence group is owned by Caerus Topco S.à r.l. and all copyright resides with the group.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction

OSCO DRUG WILL BE ONE OF THREE AUTONOMOUS OPERATING UNITS

Executive Summary

OSCO DRUG WILL BE ONE OF THREE AUTONOMOUS OPERATING UNITS within the American Stores group after reorganization. "In an effort to manage the company's assets more efficiently and effectively . . . the board today approved an internal management restructuring in which the company's operating subsidiaries will be managed and operated on a more decentralized basis," American Stores Chairman L. S. Skaggs told shareholders in a recent letter. "While American Stores Company will continue as the holding company it is now," Skaggs continued, "our businesses will be grouped for operating and administrative purposes into three new organizations comprised of: (1) a western food group, consisting of Alpha Beta Company and Skaggs Alpha Beta, Inc.; (2) our national drug operation, Osco Drug, Inc.; and (3) an eastern food operation, comprised of Acme Markets, Inc., Jewel Food Stores and Star Market Company." The restructuring would facilitate the spinoff of the company's 654-store drug chain, which includes 483 Osco and 171 Sav-on drugstores, should American Stores decide to make that move in the future. "Among the ideas which will be studied is a possibility of spinning off to stockholders some or all of the company's operating units or regional operations and the public sale of minority interests in the company's subsidiaries," the letter states. "Should a decision be made to effect any of these transactions, the internal management restructuring referred to above will greatly facilitate the process." The company noted that because of tax considerations such a change would not likely be made before the end of 1989. Under the reorganization, Exec VP Scott Bergeson becomes chairman of Osco Drug, and the duties of Richard George, who serves as president of both Osco and Sav-on, will be consolidated in the position of president, Osco Drug. "Decentralizing management and operations in these logical geographical and functional groupings will allow for more intensified and regionalized management, bringing decisionmaking and operational responsibility closer to both our customers and employees," the company emphasized. The letter to shareholders also outlined a proposed shareholder rights plan, which would go into effect if and when an unfriendly suitor acquires 20% of American Stores outstanding stock or announces a tender offer for 30% or more of the retail chain's stock. The dividend distribution plan does not apply to American Stores Chairman L. S. Skaggs, who controls nearly 20% of the company's stock and sits on the board of a bank with control over another 4.2% of American Stores. The chain said that the rights "are not being distributed in response to any specific effort to acquire control of the company, and the board is not aware of any such effort."

You may also be interested in...



Part D Discount Liability Coming Into Focus: CMS Releases Drug Cost Data

Newly released Medicare Part D data sheds light on the sales hit that branded pharmaceutical manufacturers will face when the coverage gap discount program gets under way in 2011

FDA Skin Infections Guidance Spurs Debate On Endpoint Relevance

FDA appears headed for a showdown with clinicians and the pharmaceutical industry over the proposed new clinical trial endpoints for acute bacterial skin and skin structure infections, the guidance's approach for justifying a non-inferiority margin and proposed changes in the types of patients that should be enrolled in trials

Shire Hopes To Sow Future Deals With $50M Venture Fund

Specialty drug maker Shire has quietly begun scouting deals with a brand-new $50 million venture fund, the latest of several in-house investment arms to launch with their parent company's pipelines, not profits, as the measure of their worth

Latest Headlines
See All
UsernamePublicRestriction

Register

PS010687

Ask The Analyst

Ask the Analyst is free for subscribers.  Submit your question and one of our analysts will be in touch.

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel