Thursday, February 3, 2011
OK, here's a little local color. If wasn't already clear enough by its earlier store closings and associated layoffs, BJ's [Wholesale Club] announced today that it is considering "strategic alternatives":
BJ's today announced that its Board of Directors, upon the recommendation of a committee of independent directors, has decided to explore and evaluate strategic alternatives, including a possible sale of the Company. The independent committee has engaged Morgan Stanley & Co. Inc. as its financial advisor to assist in this process.
The Company has not made a decision to pursue any specific strategic transaction or other strategic alternative, so there can be no assurance that the exploration of strategic alternatives will result in a sale of the Company or in any other transaction. There is no set timetable for the process. The Company does not intend to provide updates or make any further comment regarding the evaluation of strategic alternatives, unless a specific transaction is recommended by the independent committee and the board, or the process is concluded.
BJ's [Wholesale Club] is a Delaware corp, so it won't have any of the protections of the Massachusetts corporate law that Genzyme has. Presumably, once they decide to sell the corporation, they'll focus on getting the best price reasonably available for stockholders so the lack of a constituency statute providing an additional layer of protection for the board won't matter all that much.
(h/t WSJ Deal Journal)
Update: I've done some editing to the post to make it clear that I'm talking about BJ's Wholesale Club. C'mon people!