Safeway, after learning of a large amount of shares being accumulated by an unnamed investor, had drafted and adopted a plan to protect itself from a hostile take over. This was announced last Tuesday, which led the share prices of the grocer reach a five year high.

This plan is called the 'poison pill' defense which allows existing shareholders to acquire more stock at a lower price to discourage a takeover from an external party. This plan can be made effective should a party acquires 10% or more of the firm's common shares of stock or 15% for an institutional investor.

The grocer also operates Vons, said that it had undertaken a number of initiatives to increase value for the investments of its sharholders. One of the actions specifically for this purpose is the sale of its Canadian unit, worth around USD5.7 billion. It also did the initial public offer of its Blackhawk network, the gift and prepaid card subsidiary of the grocer.

In trading, shares of Safeway Inc, which is based out of Pleasanton CA, rose by 7% to USD30.08 per share.