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Monday, December 3, 2012

Supervalu Inc. (NYSE:SVU) Jumps As Cerberus considering various options


Grocery store chain SUPERVALU INC.(NYSE:SVU) is still being stalked. Shares in the company rose more than 12 percent in pre-market trades on Monday on reports that private equity firm Cerberus is considering various options for the company.

The Wall Street Journal reported the story citing sources.
According to the report, the various strategic options being considered by Cerberus Capital Management LP included possibly buying the entire business or just purchasing the Albertsons stores, which Supervalu bought in 2006.

The Journal said that Cerberus has not presented Supervalu with a formal bid. It added that Cerberus was negotiating for finances for a buyout.

Supervalu owns the Albertsons, Jewel-Osco, Save-A-Lot and other grocery chains.

The report in the Journal is in direct contradiction to story run by Bloomberg last Thursday that talks between Supervalu and Cerberus were not progressing as the private equity firm was unable to arrange the funds for a leveraged buyout.

Supervalu's stock rose 12 cents, or 5.25 percent, to $2.51, well off session high of $2.68.

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