NEWS WATCH

SAFEWAY, Pleasanton, Calif., said Kohlberg Kravis Roberts & Co., the New York-based investor that engineered a leveraged buyout of Safeway in 1987, will continue to reduce its holdings in the retailer with an offering for the sale of 22.1 million shares of stock by two KKR affiliates, plus an additional 2.9 million shares that will be sold upon the exercise of warrants held by the two affiliates.

SAFEWAY, Pleasanton, Calif., said Kohlberg Kravis Roberts & Co., the New York-based investor that engineered a leveraged buyout of Safeway in 1987, will continue to reduce its holdings in the retailer with an offering for the sale of 22.1 million shares of stock by two KKR affiliates, plus an additional 2.9 million shares that will be sold upon the exercise of warrants held by the two affiliates. The proposed offering would reduce KKR's holdings to approximately 55.1 million shares, or about 23% of the total, compared with approximately 33% currently.

rized under the state's Unfair Competition Act; the California Penal Code says only state-authorized agencies can file criminal actions against businesses.

FAST FOOD and other replacement meals are hurting supermarket sales of health and beauty care items, over-the-counter drugs, cleaning and laundry supplies and paper products, concludes a new study by ADVO Inc., Windsor, Conn., and Information Resources Inc., Chicago. According to the report, "Winning Over Cross-Channel Shoppers," consumers are spending less time -- and less money -- in supermarkets this year than they did a year ago.

A&P, Montvale, N.J., said last week that it expects earnings for the quarter ended Nov. 29 to be below earnings in the corresponding quarter of last year.