Safeway to Buy Back Up to $1 Billion in Shares

Food and drug retailer Safeway Inc. said its board authorized the repurchase of as much as $1 billion of its shares. Pleasanton, Calif.-based Safeway said it intends to pursue acquisitions with a focus on supermarket assets and said it has been and will continue to be in discussions concerning potential transactions. Safeway in July agreed to buy Randall’s Food Markets Inc., a privately held supermarket chain, for $1.43 billion in cash and stock. Safeway has been named as a possible buyer of troubled No. 3 U.S. drugstore chain Rite Aid Corp. Safeway Chairman and Chief Executive Steve Burd said, “Current market conditions provide an excellent opportunity for us to buy back our shares.” Safeway said repurchases will be made from time to time at prevailing prices in the open market or in privately negotiated transactions. Safeway shares closed up $1.94 at $35.94 on the NYSE.