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...
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