Safeway Adopts Poison Pill In Face Of Investor's Stock Buy

Law360, New York (September 17, 2013, 6:28 PM ET) -- Safeway Inc. created a shareholder rights plan after finding out about an “accumulation of a significant amount of the common stock” by an investor, the company announced Tuesday.

The plan, commonly called a poison pill, will entitle stockholders to buy one-thousandth of a share of newly created preferred stock in Safeway at an exercise price of $100 anytime a person or group acquires 10 percent of the company's shares, the company said.

The conditional discount is structured to prevent hostile takeovers and will expire in September...
To view the full article, take a free trial now.
Try Law360 for free for seven days
Already a subscriber? Click here to login

Already have access?

  1. Forgot your password?
  2. Sign In

Get instant access to the one-stop news source for business lawyers