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TMCNet:  SAFEWAY SHAREHOLDERS: Johnson & Weaver, LLP Announces Investigation of the Proposed Buyout of Safeway, Inc. by Cerberus Capital Management L.P.

[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 common stock.


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 price."

If you are Safeway shareholder and would like additional information concerning your legal rights, please contact lead analyst Jim Baker (jimb@johnsonandweaver.com) 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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