Safeway plans Blackhawk IPO

The supermarket chain said it is planning an IPO of its Blackhawk Network Holdings gift card and payment services unit. Safeway (SWY) said the IPO will take place during the first half of '13, depending on market conditions. Blackhawk sells prepaid gift cards, prepaid credit cards and prepaid debit cards for stores and other businesses. It works with automated and kiosk-based services such as DVDPlay, CoinMaster and various ATMs and in-store banks. It is in the process of creating an Automated Clearing House payment system, known as Fastforward, to debut in Safeway stores and extend later to affiliated businesses. Shares rose 4.3% to 16.50.