Yucaipa Sues Safeway Over Dominick’s
By George Anderson
Yucaipa sued Safeway claiming it had an “anyone but Yucaipa” strategy when it put Dominicks Finer Foods up for sale. The suit, filed in Los Angeles Superior Court seeks to reopen the bidding for the Chicago-based supermarket chain, according to the Los Angeles Times.
Safeway reportedly agreed with Supervalu on a preliminary deal to acquire Dominick’s.
Safeway purchased Dominicks from Yucaipa in 1998 for $1.8 billion. The final price Dominicks will demand is expected to be significantly lower than that number.
Moderator’s Comment: What are your thoughts on Yucaipa suing Safeway?
Steve Burd and company would never let hard feelings associated with buying Dominicks from Yucaipa get in the way of making the best deal on its sale.
Ron Burkle and Yucaipa must already know this, so why the law suit? [George
Anderson – Moderator]