Wednesday, April 18, 2012

Safeway stock price rises on acquisition speculation

Genuardi's parent company Safeway saw its stock rise 7.5% last week, its largest one-week rally since 2009, on speculation of a possible acquisition. With nearly 1,700 stores, Safeway is one of the country's largest supermarket operators.

The acquisition talk was triggered by Safeway's adoption of a vesting acceleration that may require executives to remain with the company if it's bought in order to receive their fully vested payout. A JPMorgan Chase analyst also pointed to share buybacks and the promotion of Safeway's CFO as evidence of a potential "corporate action."

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