retail news in context, analysis with attitude

...with brief, occasional, italicized and sometimes gratuitous commentary...

• The Wall Street Journal reports that Safeway has reached a preliminary settlement of a shareholder lawsuit that could have derailed its acquisition by Cerberus Capital Management for $9.4 billion. The suit was related to Safeway's ownership interest in Casa Ley, a Mexico-based retailer, which the company now will sell.

The Cerberus acquisition of Safeway, which will put it under the same ownership umbrella as Albertsons, is expected to close within three months.

I have to be honest here. The details of this tentative settlement are a lot more complicated than I've described them … but I'm not going to offer any more detail because, quite frankly, I don't understand any of this stuff … this kind of financial stuff, like references to "contingent value rights," is way beyond my pay grade. But if you're interested, check them out here.

Advertising Age reports that Chipotle's integrated media campaign called "The Scarecrow," which highlighted the company's efforts to sustainably source its products and avoid those made by "Big Food," won the PR Grand Prix award at Cannes.

The campaign was created by Creative Artists Agency with partner agency Edelman.

• The Los Angeles Times reports that Hillshire Brands has formally agreed to be acquired by Tyson Foods for almost $8.6 billion in cash and assumed debt. The deal includes the dropping of Hillshire's own bid to acquire Pinnacle Foods and the cessation of negotiations with Pilgrim's Pride, which also wanted to acquire Hillshire.
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