Safeway’s Poison Pill Plan

Shares in Safeway Inc. (NYSE:SWY) jumped more than 9 percent on yesterday’s market after the company announced that it was instituting a poison pill measure to prevent an acquisition of the company.

The poison pill plan allows shareholders in Safeway Inc. (NYSE:SWY) to buy 1/1000th of a preferred share in the company for $100 if a single shareholder accumulates more than 10 percent of the company. Safeway management said the move is designed to prevent a takeover as the company gets its strategy in place to maximize value.

Safeway value

A Goldman Sachs Group Inc. (NYSE:GS) Report on the...