Safeway Implements Stockholder Rights Plan With Poison Pill and 2 Other Hot Stocks to Watch
Safeway Inc. (NYSE:SWY): Current price $30.52
Safeway shares are up by more that 7 percent Tuesday morning in heavy volume as the grocer reported a one-year stockholder rights plan, which includes the activation of a poison pill should a person or group purchase 10 percent or more of its outstanding common stock, or 15 percent or more in a passive institutional investor situation.
The company said that it made the announcement after it “became aware of an accumulation of a significant amount of the common stock of the company.” Without identifying the investor, Safeway said the poison pill will help foster “fair and equal treatment” of all stockholders. Through the plan, one preferred stock purchase right will be distributed for each share of common stock held as of September 30, according to a Tuesday statement.