Supervalu attracts interest from Burkle,
KKR, TPG: Sources
Billionaire Ronald Burkle and buyout
firms KKR and Co and TPG Capital evinced interest in SUPERVALU INC.(NYSE:SVU),
the grocery chain that is looking at various strategic options. According to
sources who did not want to be identified, those interested in Supervalu are
looking only at parts and not the entire chain. Even Cerberus Capital
Management LP has looked at some of the assets, one source added.
But the third largest grocery chain in
the U.S. wants a deal involving the entire company and not just chunks of it. It
has extended the deadline for an offer to after October 15. However, one single
bidder is unlikely to want Supervalu’s dozen retail banners, pharmacies and
distribution business.
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Should Investors Trade SVU Now? Find Out Here
The Supervalu stock fell to $2.29 by 6
cents in New York. But it jumped 9.2 percent in after-hours trading after news
reports of the interest expressed by Burkle and others.
Xyratex stock falls on poor earnings
Xyratex Ltd.(NASDAQ:XRTX), the UK based
data storage company posted poor results and also forecast negative earnings
for the current quarter causing the stock to tumble.
Xyratex shares have already fallen after
the company said last month that its third quarter revenue would fall more than
anticipated. Sales and therefore revenue had weakened because a few products
were not up to the required standards technically and did not meet performance
requirements.
Xyratex’s net income was $7.7 million or
28 cents for the quarter ended August 31. In the corresponding period last
year, it had earned $9.7 million or 32 cents per share. Revenues also fell from
$361.8 million to $275.7 million.
For the fourth quarter, it expects an
adjusted loss between 15 and 43 cents a share and anticipates revenues between
$235 million and $285 million.
The Xyratex stock fell to $7.43 in
after-hours trading, down by $1.27, almost 15 percent.
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