Van de Kamp Appeals to Block Lucky-Alpha Beta Merger

California Atty. Gen. John K. Van de Kamp on Friday formally filed an appeal with the U.S. Supreme Court in a last-ditch hope of blocking the merger of American Stores’ Lucky and Alpha Beta supermarket chains.

As of late Friday, no decision had been issued by Supreme Court Justice Sandra Day O’Connor, who fields emergency appeals in cases under the jurisdiction of the U.S. 9th Circuit Court of Appeals.

Barring intervention by the high court, a decision to allow the merger would rest with U.S. District Judge David Kenyon in Los Angeles as of Monday. Late Thursday, the U.S. 9th Circuit Court of Appeals said it was lifting its order blocking the merger and was returning the case to the District Court.

May Request Some Sales

The attempt to block the merger will be abandoned unless the Supreme Court approves the stay without a bond, according to Andrea Sheridan Ordin, chief assistant attorney general. The attorney general’s office has contested a $16.3-million bond imposed by Kenyon.

If the merger goes through, the attorney general’s office said it will ask the court to force the company to sell some stores or limit its growth.

On Thursday, both Ordin and Frank Rothman, an attorney for American Stores, had said it was their understanding that the merger would go through on Monday unless the top court got involved.

However, after more closely scrutinizing the appeals court ruling, the two sides said they realized that the District Court still had to give its go-ahead to make things official.

“Monday is not necessarily a magic day,” noted Duane Peterson, a spokesman for the attorney general’s office.

In a statement Friday, American Stores said it would ask the District Court to decide promptly on the matter.

The legal maneuverings continue a nearly yearlong battle begun when Van de Kamp decided last Sept. 1, as American Stores was preparing to unite the chains, to challenge the merger on antitrust grounds. He argued that California consumers would end up paying millions of dollars in higher food bills because of reduced competition. The District Court imposed a preliminary injunction blocking the merger.

For its part, American Stores, which paid $2.5 billion for Lucky Stores last year, has countered that a merger of the two chains under the Lucky banner would save the company as much as $75 million a year in advertising, distribution and other costs. It has vowed to pass along to customers as much as $50 million to $60 million in savings in the form of lower prices.