Seeking Alpha

Report: Kroger looking at Safeway assets

  • Kroger (KR +0.4%) has contacted Safeway (SWY +1.7%) about buying some its assets, according to a report from Bloomberg.
  • The grocery store operator is considering acquiring some of the Safeway stores that Cerberus Capital might pass on.
  • Though Safeway would prefer to sell itself in its entirety, those hopes are fading.
Comments (4)
  • vmetla
    , contributor
    Comments (69) | Send Message
     
    There will be a bidding war, I think SWY's PT would be 45+
    3 Mar 2014, 01:28 PM Reply Like
  • jwanebo
    , contributor
    Comments (22) | Send Message
     
    Kroger does not need more debt and should pass on this weak competitor. With the current in store performance and projected eps in '14, Kroger should increase the dividend, including a 2% stock dividend, thus rewarding shareholders with a share in the wealth.
    3 Mar 2014, 09:22 PM Reply Like
  • smcisaac
    , contributor
    Comments (5) | Send Message
     
    What's the basis for saying "those hopes are fading"? I read the Bloomberg article and didn't see it.
    3 Mar 2014, 11:25 PM Reply Like
  • mverbanas
    , contributor
    Comment (1) | Send Message
     
    What happens to Safeway bonds in the event the company sells itself?
    4 Mar 2014, 09:14 AM Reply Like
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