Analyst: Metro could use cash to buy some Safeway stores, Financial Post reports

theflyonthewall.com

After Canada's Metro Inc. netted about $416M after-tax in the sale of its stake in Alimentation Couche-Tard, Credit Suisse analyst David Hartley outlined several acquisition options it may consider, including the potential to buy the 120 stores of Overwaitea, a supermarket chain owned by Safeway (SWY), reported Financial Post. Hartley said the Safeway option may generate the most value for Metro, but the company would likely need to compromise its debt rating to make such a buy. The Fly notes shares of Safeway are up 5.25% to $19.83 in mid-morning trading.

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