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July 18, 2007

Safeway and Rumored Buyer Sears Corp. Share Past Connections

Changing trading patterns over the last couple weeks have led to some pondering that Safeway Inc. may be considering a buyer. The rumored shopper at the moment appears to be Sears Holding Corp., headed by its chairman, Edward S. Lampert. Since official word from either camp regarding the possibility of a transaction has yet to be made, the buzz remains in its early stages. Regardless, we decided to create an IntellectSpace Knowledge Map displaying the relationships between Sears and Safeway in the hopes that by creating a visual map of certain connections, a greater degree of insight may be achieved as to the definitiveness of a prospective acquisition.

Based on the Knowledge Map seen here, a number of relationships exist between certain individuals of either company, primarily through shared board memberships and business connections with outside companies. However, since the majority of these relationships exist only with past members of Sears and Safeway, it is difficult to say for certain whether or not these contacts will factor in on this potential partnership. One relationship pictured on the Knowledge Map that may make an impact in this deal is that shared between Sears chairman Lampert and Robert I. Macdonnell, a longtime director at Safeway. Both were previous members of the board at Autozone Inc., suggesting a likely crossing of paths. Because each presently hold senior leadership positions at Safeway and Sears, their past board connection from Autozone could have some influence on the outcome of this possible corporate purchase.

Despite the lack of current associations, the rumor is worth keeping up with as interactions between existing and former board members and executives are not unusual. Knowledge Maps let us see how even a past connections can play roles in shaping future business activities. Safe

http://nv.intellectspace.com/ispace/GuestMonitor.aspx?id=b33671a5-1b68-44ed-8bb5-963fa28548c3(Internet Explorer browsers only)

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