This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Newman Ferrara LLP Announces Investigation Of Safeway Inc.

Newman Ferrara LLP is investigating potential claims against the board of directors of Safeway Inc. (“Safeway”) (NYSE:SWY) concerning the proposed acquisition of Safeway by private investor group Cerberus Capital Management (“Cerberus”).

On March 6, 2014, Safeway announced that it had entered into an agreement to be acquired by Cerberus under which Safeway’s stockholders will receive $32.50 in cash, plus a potential additional $3.65 per share in contingent value rights (“CVRs”) from sales of certain real-estate development assets, for a total value of $36.15 per share of Safeway stock owned. However, the $36.15 per share offer price is below the $39.48 per share closing price of Safeway stock on March 5, 2014, the day prior to the deal’s announcement and below the $46.00 per share price target set by analysts at Telsey Advisory Group on February 20, 2104. Commenting on the proposed deal, Deutsche Bank analyst Karen Short stated that “we believe the current offer undervalues Safeway.”

In addition, Deutsche Bank analyst Karen Short also noted how the proposed offer “transfers risk onto SWY shareholders given the difficulty in valuing the CVRs, which are non-transferable/non-tradable and, thus, illiquid. The cash value of the CVRs may not be realized for up to four years for the Casa Ley CVR (shareholders will receive fair market value if business is not sold after four years) and could expire worthless in two years for the PDC CVR.”

Newman Ferrara LLP’s investigation concerns whether Safeway’s Board of Directors has breached its fiduciary duties to act in the best interests of Safeway’s stockholders and to take all necessary steps to ensure that Safeway’s stockholders receive the maximum value readily available for their shares of Safeway common stock.

Concerned investors may contact Newman Ferrara attorney Roy Shimon at to discuss this investigation, their rights, or potential remedies.

Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation, securities fraud and shareholder litigation, consumer protection, civil rights, and real estate. For more information, please visit the firm website at

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs