Grumbling Safeway investors back bid
SAFEWAY shareholders voiced their frustration at having to sell out to Morrison Supermarkets, but gave overwhelming backing to the £3bn takeover.
Chairman David Webster blamed regulators for 'placing Safeway in a straight-jacket' but insisted that the deal was the best option for shareholders.
Latest supermarkets data showed that Safeway is continuing to lose ground, with its share of the grocery sector falling from 6% to 5.4% in the quarter to February.
Webster, who has been a director and shareholder since Safeway's formation in 1977, said he was 'feeling great sadness'.
'It has been a very taxing and intensive 13 months,' he said, adding that the regulatory process was 'hopelessly protracted and insensitive' to Safeway staff.
He told shareholders that he could have secured a higher bid if regulators had not blocked a carve-up or sale to Tesco, Asda or Sainsbury. One shareholder said Morrisons 'has just had a gift and the Santa Claus was Safeway'.
More than 99% of Safeway and Morrison shareholders backed the deal. For every Safeway share, investors will get one Morrison share and 60p in cash. Safeway rose 2 3/4p to 280 1/2p while Morrison rose 2 3/4p to 221 1/2p.
Shareholders are annoyed that Morrison dividends are likely to be just a third of the amount they received under Safeway. Safeway chief executive Carlos Criado-Perez said he is already in talks about a new job.
