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Heard Any Good Ones: Archive
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<blockquote data-quote="zippo" data-source="post: 59992"><p>Peapod, in Search of Takeover Offers, </p><p>Is Visited by UPS and Grocery Rivals </p><p>By DEVON SPURGEON </p><p>Staff Reporter of THE WALL STREET JOURNAL </p><p> </p><p> </p><p>CHICAGO -- Peapod Inc., so pressed for cash it is courting takeover offers, has received visits from representatives of United Parcel Service of America Inc., HomeGrocer.com and Royal Ahold NV of the Netherlands, according to people familiar with the matter. </p><p> </p><p>But no bid has been made for Peapod, the nation's largest online grocer. Earlier this month, the resignation for health reasons of its chief executive, William Malloy, prompted venture capitalists to drop a planned investment of $120 million. That setback forced Peapod to hire investment-banking firm Wasserstein Perella &amp; Co. to explore strategic alternatives, including possibly selling the company. </p><p> </p><p>Officials of UPS, Atlanta, declined to comment, as did those of Peapod rival HomeGrocer, Kirkland, Wash., and European grocery giant Ahold. </p><p> </p><p>Peapod, which has a market capitalization of $57 million, delivers groceries to customers who place their orders online. Its database contains the names, addresses and grocery-preferences of 100,000 customers in eight major markets. That could represent a prize for a traditional grocery company seeking to bolster its fledgling online operation or for such competitors as Webvan Inc., Foster City, Calif., and HomeGrocer. </p><p> </p><p>Like other online concerns, Peapod has never earned a penny. In mid-March, Peapod said it had $3 million to cover operating debts of an amount it wouldn't disclose. Peapod officials won't say how much of that $3 million remains. </p><p> </p><p>A statement from Andrew Parkinson, founder and acting CEO, said: "We are working closely with our financial advisers in exploring strategic alternatives for the company but cannot comment on the specifics of the process or on the parties with whom we have spoken regarding a possible interest in the company. I also cannot comment on whether we have received any indications or offers." </p><p> </p><p>Peapod board members are set to meet Friday to discuss their options. Those would include continuing the search for a buyer or finding bridge financing that would allow the company to continue operating in the near term. Another possibility would be to find a new source of venture capital. </p><p> </p><p>At 4 p.m. Wednesday, Peapod was down 12.5 cents at $3.1875 on the Nasdaq Stock Market.</p></blockquote><p></p>
[QUOTE="zippo, post: 59992"] Peapod, in Search of Takeover Offers, Is Visited by UPS and Grocery Rivals By DEVON SPURGEON Staff Reporter of THE WALL STREET JOURNAL CHICAGO -- Peapod Inc., so pressed for cash it is courting takeover offers, has received visits from representatives of United Parcel Service of America Inc., HomeGrocer.com and Royal Ahold NV of the Netherlands, according to people familiar with the matter. But no bid has been made for Peapod, the nation's largest online grocer. Earlier this month, the resignation for health reasons of its chief executive, William Malloy, prompted venture capitalists to drop a planned investment of $120 million. That setback forced Peapod to hire investment-banking firm Wasserstein Perella & Co. to explore strategic alternatives, including possibly selling the company. Officials of UPS, Atlanta, declined to comment, as did those of Peapod rival HomeGrocer, Kirkland, Wash., and European grocery giant Ahold. Peapod, which has a market capitalization of $57 million, delivers groceries to customers who place their orders online. Its database contains the names, addresses and grocery-preferences of 100,000 customers in eight major markets. That could represent a prize for a traditional grocery company seeking to bolster its fledgling online operation or for such competitors as Webvan Inc., Foster City, Calif., and HomeGrocer. Like other online concerns, Peapod has never earned a penny. In mid-March, Peapod said it had $3 million to cover operating debts of an amount it wouldn't disclose. Peapod officials won't say how much of that $3 million remains. A statement from Andrew Parkinson, founder and acting CEO, said: "We are working closely with our financial advisers in exploring strategic alternatives for the company but cannot comment on the specifics of the process or on the parties with whom we have spoken regarding a possible interest in the company. I also cannot comment on whether we have received any indications or offers." Peapod board members are set to meet Friday to discuss their options. Those would include continuing the search for a buyer or finding bridge financing that would allow the company to continue operating in the near term. Another possibility would be to find a new source of venture capital. At 4 p.m. Wednesday, Peapod was down 12.5 cents at $3.1875 on the Nasdaq Stock Market. [/QUOTE]
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