A group led by Alex Grass, chairman and president of Rite Aid Corp., and members of his family said it holds a 7.1 percent stake in Farm Fresh Inc. and has told management that it would like to acquire the rest of the company.
In a filing with the Securities and Exchange Commission, the group said that Grass met with Farm Fresh Chairman David Furman on Wednesday to discuss the possibility.
The group said that Grass suggested a negotiated acquisition of Farm Fresh -- a Norfolk-based operator of supermarkets and general merchandise stores -- that would include the company's management. According to the filing, Furman said he would present the proposal at his company's next board meeting, scheduled for Tuesday.
If Farm Fresh does not pursue the matter, the group said it will explore other ways to acquire control of the company independently -- perhaps through a tender offer or by seeking board representation through a proxy contest.
The management of GF Investments Two Inc., which holds the group's stake in Farm Fresh, consists of Grass and his two sons and two daughters, all of whom are Rite Aid executives.
The group owns 950,000 Farm Fresh common shares, including 626,000 shares bought between July 30 and Sept. 23 at prices ranging from $13.8125 to $15 each.
Rite Aid, based in Harrisburg, Pa., operates drugstores, auto-parts stores and bookstores.