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Breaking News from CNBC's David Faber: Safeway Expected to Discuss Openness to Exploring Alternatives on Conference Call - Sources

WHEN: Today, February 19, 2014

WHERE: CNBC's "Closing Bell"

Following is the unofficial transcript of breaking news from CNBC's David Faber. Following is a link to the video on CNBC.com: http://video.cnbc.com/gallery/?video=3000247426

All references must be sourced to CNBC.

DAVID FABER: WE HAVE BEEN WATCHING SHARES OF SAFEWAY LATE IN THE AFTERNOON HERE, BILL. OF COURSE STOCK TRADING ABOUT TWICE ITS VOLUME. WANTED TO SHARE A COUPLE OF THINGS THAT I AM HEARING OUT THERE. THE FIRST IS, THERE IS A GROWING EXPECTATION THAT ON ITS CONFERENCE CALL WHICH WILL BEGIN AT 5PM EASTERN TODAY, SAFEWAY WILL GIVE VOICE AT LEAST TO THE IDEA THAT IT IS ENTERTAINING OR CONSIDERING PURSUING ALTERNATIVES TO CREATE VALUE INCLUDING A SALE OF THE COMPANY. THAT AT LEAST IS AN EXPECTATION OUT THERE OF A NUMBER OF THE PEOPLE THAT I AM SPEAKING TO. SEPARATELY I CAN TELL YOU AS WELL, THAT PEOPLE CLOSE TO THE COMPANY INDICATE TO ME THAT THERE HAVE BEEN SOME CONVERSATIONS ONGOING BETWEEN SAFEWAY AND PRIVATE EQUITY FIRMS RECENTLY. NOW WHETHER THAT WILL RESULT IN ANY SORT OF A DEAL OF COURSE REMAINS UNCLEAR. CERBERUS HAS BEEN NOTED AS AN OWNER OF ALBERTSONS AND AN OWNER OF A PERCENTAGE STAKE IN SUPERVALU AS WELL. ALTHOUGH A DEAL OF THIS TYPE WOULD BE LARGE IN SIZE, GIVEN THE SIZE OF SAFEWAY IN FACT AT THIS POINT. REMEMBER THE COMPANY DID PUT IN A POISON PILL AT TEN PERCENT BACK IN THE FALL. JANA WAS THE REASON FOR THAT. THE ACTIVIST INVESTOR WHICH STILL CONTINUES TO OWN ROUGHLY PERCENT OF ITS SHARES FROM WHAT I HEAR. WE WILL KEEP AN EYE ON SAFEWAY AFTER THE BELL. BACK TO YOU GUYS.

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