Winn-Dixie Shares Skyrocketed: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of supermarket chain Winn-Dixie Stores (NAS: WINN) soared a staggering 70% on Monday after privately held rival BI-LO agreed to acquire it for about $560 million.

So what: The all-cash deal values Winn-Dixie at $9.50 per share and represents a whopping 75% premium to its closing price on Friday. The transaction marries two of the more established supermarkets in the southern U.S., with the combined company having about 690 stores and 63,000 workers in the region.

Now what: The deal, which Winn-Dixie's board has unanimously approved, is expected to close in the next 60-120 days."[T]he combined company will have a perfect geographic fit that will create a stronger platform from which to provide our customers great products at a great value, while continuing to offer exceptional service," said BI-LO Chairman Randall Onstead. Of course, for Winn-Dixie shareholders about to be taken private, Kroger (NYS: KR) and Safeway (NYS: SWY) seem like beaten-down bargains worth rolling some profits into.

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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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