|By PR Newswire||
|March 6, 2014 05:34 PM EST||
NEW YORK, March 6, 2014 /PRNewswire/ -- Tripp Levy PLLC, a leading securities and shareholder rights law firm that represents shareholders throughout the nation, announces that it is investigating the acquisition of Safeway Inc. (NYSE: SWY) on behalf of shareholders. It was announced that the Albertson's, which is controlled by private equity firm Cerberus Capital Management L.P. agreed to acquire Safeway. Safeway shareholders will only receive $32.50 per share in cash. Additionally, shareholders will have the right to receive pro-rata distributions of net proceeds from primarily non-core assets worth an estimated value of $3.65 per share.
The investigation concerns whether the board of directors and senior management of Safeway breached their fiduciary duties by not engaging in a full and fair auction and process to sell the Company so that shareholders received the maximum value for their shares. Indeed, analysts have projected that the true going forward inherent value of the Company is worth at least $46 per share, and the Company's book value is over $25.50 per share making this offer significantly less than 2x book value. Further, it was reported that supermarket chain Kroger's was interested in acquiring Safeway for a price higher than $40 per share but that Safeway may have refused to negotiate with Kroger over potential antitrust concerns.
If you are a shareholder of Safeway and would like additional information regarding this matter, at no cost or expense, please contact us at:
Tripp Levy PLLC is a leading securities and shareholder rights law firm that has extensive experience in securities litigation, and has assisted in the recovery of hundreds of millions of dollars for shareholders around the globe. Tripp Levy PLLC has become affiliated with Milberg LLP.
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SOURCE Tripp Levy PLLC