Hostile Takeover Prevented By Safeway Thinking Ahead


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The grocery store chain, Safeway, devised a plan to ensure survival and prevent hostile takeover after an investor recently acquired a significant chunk of stock from the company. The plan instigated by Safeway is one of a defensive nature, set to go into effect whenever a person or group purchases at least ten percent of the company's common stock, or when an institutional investment company purchases fifteen percent.

The "poison pill" plans are set to encourage present shareholders to purchase a greater amount of stock at a reduced rate, thus limiting the potential for an outside party to purchase the stock instead.

Safeway, as a company, has rewarded loyalty and strives not only to encourage present shareholders to purchase stock over outside forces, but also encourages present customers to have heightened grocery shopping experiences by providing specific deals individually-tailored for customers based on their past shopping experiences. The store has undergone some strategic changes such as the recent sale of the Canadian portion of the company, which totaled 5.7 billion dollars.

The popular grocery store chain shares the unique company motto on the company twitter page. We’re proud to be your neighborhood grocery store. You can count on our great quality and low prices. That’s Safeway. That’s ingredients for life. Safeway has become a popular grocery-shopping option where customers are unwilling to give up their chosen grocer as shown from comments on Twitter.

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