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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