March 7, 2014 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of Safeway Inc. (NYSE:SWY) shares, was announced concerning whether the takeover of Safeway Inc. for a value of approximately $40.00 per share is unfair to NYSE:SWY stockholders.

The investigation by a law firm concerns whether certain officers and directors of Safeway Inc. breached their fiduciary duties owed to NYSE:SWY investors in connection with the proposed acquisition.

On March 6, 2014, Safeway Inc. (NYSE:SWY) and Albertsons announced an agreement under which AB Acquisition LLC ('AB Acquisition') will acquire all outstanding shares of Safeway Inc. (NYSE:SWY). Under the terms of the proposed transaction Safeway Inc. shareholders are expected to receive total value estimated at $40 per share.

However, given that NYSE:SWY shares grew following the takeover news to $40.17 per share in the open market on March 6, 2014 and that at least one analyst has set the high target price for NYSE:SWY shares at $46.00 per share, the investigation concerns whether the $40.00-offer is unfair to NYSE:SWY stockholders.

In addition, the investigation concerns whether the Safeway Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.

Safeways performance improved recently. For instance, Safeway Inc. reported that its Total Revenue rose from over $35.35 billion for the 52 weeks period that ended on Dec. 31, 2011 to over $36.13 billion for the 52 weeks period that ended on Dec. 28, 2013 and that its Net Income for those time periods increased from $516.70 million to over $3.5 billion. Shares of Safeway Inc. (NYSE:SWY) grew from $16.09 per share in September 2012 to as high as $39.87 per share on March 5, 2014.

On March 7, 2014, NYSE:SWY shares closed at $38.60 per share.