OLYMPIA, Wash. – Washington Attorney General Bob Ferguson is suing to prevent the owner of Haggen and Safeway stores from paying off investors ahead of a huge merger.
Grocery giant Albertsons planned to pay shareholders $4 billion before it’s taken over by Kroger, which owns Fred Meyer and QFC stores.
Ferguson says the dividend payout would come before regulators are able to scrutinize the merger of the nation’s two biggest grocery chains.
The $4 billion would exceed Albertson’s cash-on-hand, and Ferguson says it would jeopardize the company’s ability to operate its stores in Washington.