|[March 06, 2014]
SAFEWAY SHAREHOLDERS: Johnson & Weaver, LLP Announces Investigation of the Proposed Buyout of Safeway, Inc. by Cerberus Capital Management L.P.
SAN DIEGO --(Business Wire)--
Shareholder rights law firm Johnson & Weaver, LLP is investigating
whether members of the board of directors of Safeway, Inc. (NYSE:SWY)
breached their fiduciary duties in connection with the proposed buyout
of the Company by Cerberus Capital Management L.P.
On March 6, 2014, Cerberus Capital entered into a definitive merger
agreement to buy Safeway. Under the terms of the agreement, Safeway
shareholders will receive a total value estimated at $40 per share. The
transaction is valued at approximately $9.4 billion.
The investigation concerns whether Safeway's board members failed to
satisfy their duties to the Company's shareholders, including whether
the board adequately pursued alternatives to the acquisition and whether
the board obtained te best price possible for the Company's shares of
Jim Baker, lead analyst for Johnson & Weaver, stated that, "Cerberus'
offer appears to be inadequate and not in the best interest of Safeway's
shareholders." Baker cited, "At least one analyst estimates
Safeway to be valued at $46.00 per share, which is far more than the $40
anticipated deal value and only 1.3% over the March 6, 2014 closing
If you are Safeway shareholder and would like additional information
concerning your legal rights, please contact lead analyst Jim Baker (firstname.lastname@example.org)
at 619-230-0063. If you email, please include your phone number.
Johnson & Weaver, LLP is a nationally recognized shareholder rights law
firm with offices in California and New York. The firm represents
individual and institutional investors in shareholder derivative and
securities class action lawsuits. For more information about the firm
and its attorneys, please visit http://www.johnsonandweaver.com.
Attorney advertising. Past results do not guarantee future outcomes.
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