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Safeway has settled a class action lawsuit filed by a shareholders' group in connection with the grocer's planned merger with AB Acquisition LLC. The terms of the settlement include adjustments to certain provisions of the Casa Ley and PDC contingent value rights (CVR) agreements.
Under the amendment to the Casa Ley agreement, the deadline to sell the Safeway-owned Mexican retailer will be shortened from four years to three years. Safeway said it would offer fair market value for any unsold equity interests of Casa Ley by the deadline.
The PDC settlement guarantees fair market value for unsold assets of Safeway's shopping center portfolio at the end of its two-year deadline.
Safeway also plans an early termination of its stockholder rights plan on June 19, 2014, three months ahead of its original expiration date of Sept. 15.
Pleasanton, Calif.-based Safeway Inc. operates 1,332 stores in 20 states and the District of Columbia under its namesake banner, as well as Vons, Pavilions, Randalls, Tom Thumb and Carrs.