After years of deteriorating financial performance and undermine the market position, Safeway, Inc, the largest chain of community grocery store in the U.S., was the target of a hostile takeover bid. Management decided to take the company private in a $ 4.3 billion leveraged buyout supported by Kohlberg Kravis and Roberts. This case began with controversy surrounding the sale of Safeway in its division by Dallas LBO and traces the events leading up to the LBO. Continues to discuss the problems facing management in the company's restructuring -. Including the revision of contracts uncompetitive labor and intense pressure from the capital markets (through hostile takeover bids) to cede control of the company "Hide
by Karen H. Wruck, Steve-Anna Stephens Source: Harvard Business School 22 pages. Publication Date: June 2, 1994. Prod. #: 294139-PDF-ENG
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