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Bloomberg reports that Safeway has adopted a so-called "poison pill" after it was revealed that New York-based Jana Partners has acquired 6.2 percent of the company's stock, saying that "Safeway is undervalued and that it may continue discussions with the company regarding a review of strategic alternatives. Options may include returning capital to shareholders and replacing management, Jana said ... Jana, which manages about $5 billion ... generally invests in companies undergoing changes such as mergers, spinoffs and bankruptcies, and is known for pushing management to consider changes."

Safeway says that the "poison pill" would effectively prevent any single company from acquiring more than 10 percent of its stock, hence allowing management to continue implementing its plans. The retailer said that it is currently engaged in a reshaping of its business - selling its Canadian stores, and spinning off its Blackhawk Network gift card business (in which it still has a 73 percent ownership position).
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