Seeking Alpha

Safeway takeover buzz ramps up

A bid by Cerberus to buy Safeway (SWY +1.7%) has been complicated by the emergence of Kroger (KR +2.4%) as a potential bidder for part or all of the company, reports the WSJ.

Inside sources still give the nod to Cerberus as the favorite to win out due to the risk that a Kroger takeover won't sit well with regulators.

Shares of Safeway are up 30% over the last 30 days off the takeover buzz.

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Comments (2)
  • Mark Krieger
    , contributor
    Comments (5156) | Send Message
    KR could still do the deal and divest the stores that would be subject to anti-trust concerns. Estimates are floating around that KR would need to rid themselves of about 160 newly acquired locations. KR could probably make a profit selling those stores by realizing the hidden value in their real estate value.


    I think a $42 offer by KR makes sense
    6 Mar 2014, 11:38 AM Reply Like
  • Chris Sandys
    , contributor
    Comments (255) | Send Message
    Nice work, Mark Krieger. You were quite close in your estimate of a potential price.
    7 Mar 2014, 07:28 AM Reply Like
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