Analysts Considering Takeover Chatter on Safeway Canada; Safeway Shares Up 5%

Desjardins analyst Keith Howlett believes Metro could look at purchases in the Grocery and/or Pharmacy segments following the sale of nearly half of its stake in Couche-Tard. Howelett specifically mentioned Safeway Canada, Jean Coutu and Overwaitea as possible targets. In addition, BMO's Karen Short mentioned Safeway Canada in a note from earlier, suggesting an offer could be more likely following the recent REIT conversion at Loblaw. Safeway shares are up more than 5 percent on Wednesday as this takeover chatter makes the rounds. The stock last traded at $19.87 on the NYSE.