Skaggs leaves empire he built.('90s)(American Stores Co)

June 21, 1995

SALT LAKE CITY -- In mid-winter 1997, coinciding with the start of American Stores Co.'s fiscal year in February, the company severed its long-standing relationship with the family of L.S. (Sam) Skaggs.

The agreement called for American Stores to repurchase 12.2 million shares of the Skaggs family's common stock for nearly $550 million.

The retailer also gave the Skaggs family, the company's largest shareholder with almost a 20% stake, the option to sell between 14.7 million and 16.4 million additional shares in a secondary offering.

The agreement enabled American Stores to completely focus on carrying out its business …