Safeway (SWY), the second-largest U.S. mainstream grocery store operator, said on Wednesday it is in talks about a possible sale of the company. According to Reuters, Cerberus Capital Management LP may be exploring a deal. Wednesday’s news comes as the operator of chains such as Safeway, Vons and Dominick’s tries to fend off tough competition in the grocery aisle from traditional players such as Kroger Co , warehouse club Costco Wholesale, discounter Wal-Mart Stores Inc and dollar stores. The company had also been pressured by activist investor Jana Partners to review strategic alternatives. On a conference call, Safeway’s Chief Executive Officer, Robert Edwards, declined to give more details on a potential buyout and said he will update investors and analysts on the progress of the related talks at the “appropriate time.”
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