P-E firms reportedly eying Safeway

Reuters reports Cerberus and other P-E firms are "exploring a deal for all or part" of Safeway (SWY). The supermarket chain is said to be reviewing its options with Goldman's help.

The report comes a month after activist investor Jana Partners disclosed a 6.2% stake in Safeway. Since then, Safeway has announced plans to abandon its money-losing Chicago ops, and has launched a new $2B buyback program. The company is in the midst of selling its Canadian ops to Empire Co. for $5.7B; Canadian regulators just signed off on the deal.

Shares finished AH trading up 4.1%.

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Comments (1)
  • Randal James
    , contributor
    Comments (4422) | Send Message
    It sure is puzzling how someone can take these firms over, get them firing on at least most of their cylinders, and flip them back out into the public again. Fred Meyer was swallowed up by KKR and cut loose later at a handsome profit, now the largest division of Kroger. Safeway was privatized once before as well. What Juju do these guys have that regular experienced grocery professionals don't 'get'?
    22 Oct 2013, 11:20 PM Reply Like
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