SAFEWAY ALTERS DEAL FOR VONS OWNERSHIP.Byline: Dave McNary McNary may refer to:
Safeway Safeway is a brand name used by several companies around the world: Supermarket chains
Safeway, which reached the stock-swap agreement to buy Vons on Dec. 16, said the change makes the buyout Buyout The purchase of a company or a controlling interest of a corporation's shares. Notes: A leveraged buyout is accomplished with borrowed money or by issuing more stock. deal more attractive to Vons and Safeway shareholders by enabling it to boost the earnings per share performance once the transaction is completed. Part of the Dec. 16 pact called for Safeway to buy 15 million of its shares from KKR KKR Korringa-Kohn-Rostoker (method) KKR Kohlberg, Kravis & Roberts & Co. KKR Kalkara (postal locality, Malta) KKR Kramers-Kronig Relations KKR Komarappa Gounder Ramalingam (hospital in India) to reduce the KKR stake from the current 49 percent to 38 percent at a price of no less than $38.375 a share. Under the revision, KKR will sell 32 million shares to Safeway at $43 a share. Wall Street reacted positively to the change with shares of Vons rising $1.08 to $62.625 and Safeway gaining 37.5 cents to $44.375. The value of the deal has increased by about $240 million since Dec. 16 due to a gain in the price of Safeway stock. Safeway, which already owns 34.5 percent of Vons, will pay Vons shareholders 1.425 newly issued shares - now worth $63.41 - for each share and assume $565 million in debt. Safeway, which plans to close the deal in March or April, has said there will be no change to the 325 Vons and Pavilions stores in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, and Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. . Safeway will become the nation's second-largest supermarket operator after Kroger Co. with 1,375 stores and $22.5 billion in annual sales. |
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