The Shareholders Foundation announces that an investor who currently holds shares of Safeway Inc. (NYSE:SWY) filed a lawsuit in effort to halt the proposed takeover of Safeway Inc. by Albertsons for $40 per share. The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:SWY stockholders arising out of the attempt to sell Safeway Inc. too cheaply via an unfair process to Albertsons.
Investors who purchased shares of Safeway Inc. (NYSE:SWY) and currently hold any of those NYSE:SWY shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.
On March 6, 2014, Safeway Inc. (NYSE:SWY) and Albertsons announced an agreement under which AB Acquisition LLC (“AB Acquisition”) will acquire all outstanding shares of Safeway Inc. (NYSE:SWY). Under the terms of the proposed transaction Safeway Inc. shareholders are expected to receive total value estimated at $40 per share.
However, the plaintiff alleges that proposed transaction offers allegedly unfair and inconsiderate consideration that does not constitute a maximization of stockholder value for plaintiff and other Safeway public stockholders and is being advanced through an unfair process. Indeed, following the takeover news to $40.25 per share in the open market on March 6, 2014 and that at least one analyst has set the high target price for NYSE:SWY shares at $46.00 per share.
Safeway’s performance improved recently. For instance, Safeway Inc. reported that its Total Revenue rose from over $35.35 billion for the 52 weeks period that ended on Dec. 31, 2011 to over $36.13 billion for the 52 weeks period that ended on Dec. 28, 2013 and that its Net Income for those time periods increased from $516.70 million to over $3.5 billion. Shares of Safeway Inc. (NYSE:SWY) grew from $16.09 per share in September 2012 to as high as $39.87 per share on March 5, 2014.
Those who are current investors in Safeway Inc. shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Joelle Day
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com