Safeway Files to Sell 25 Million Shares

Safeway Inc. filed for the sale of 25 million shares by investors, with KKR Associates, the largest shareholder, planning to sell about 28.7% of its stake in the Pleasanton, Calif.-based supermarket chain. The stock sale will include 22.13 million shares held by KKR and 2.87 million shares from the exercise of warrants owned by SSI Equity Associates, according to the filing. KKR, whose general partners include Henry Kravis and George Roberts, currently holds a 32.9% stake consisting of 77.23 million Safeway shares. The partnership will hold a 23.2% stake with 55.1 million shares after the offering. Safeway shares rose 31 cents to close at $61.69 on the New York Stock Exchange.