Safeway Squashes Buyout Speculation

SAN FRANCISCO — Safeway on Thursday downplayed recent investor speculation it was prepping for a merger or private-equity buyout. Moves by Safeway of late — aggressive stock buybacks and changes to option clauses in executive employment contracts if a change-of-control happens — had traders and analysts sketching out possible scenarios. In a conference call, Safeway CEO Steve Burd said those company actions "were not in preparation for another event." In midday trades, Safeway shares fell 3.6% to $20.82. The stock had been climbing the past two weeks.

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