The Safeway grocery store in Moses Lake. Washington Attorney General Bob Ferguson has sued Boise-based Albertsons, which owns Safeway, to prevent a $4 billion special dividend payout to the company’s shareholders in advance of a proposed $24.6 billion merger with Cincinnati-based Kroger.
November 2, 2022
Stories this photo appears in:
Ferguson files suit to block Albertsons payout
SEATTLE — Washington Attorney General Bob Ferguson has filed a lawsuit in King County Superior Court on Tuesday to block a $4 billion special dividend payout to shareholders by Boise-based Albertsons in advance of the company’s proposed merger with Cincinnati-based Kroger, saying the payout is more than the company can afford to pay and will put the company’s ability to operate in Washington at risk. In a press release, Ferguson’s office said Albertsons — which also owns Safeway — recently revealed to the Securities and Exchange Commission that the special dividend would be made from $2.5 billion in cash on hand, with the company borrowing the rest. According to data available from Charles Schwab, Albertsons was valued at roughly $10.9 billion at the end of trading on Wednesday...