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Supervalu Stock Rises on Buyout Talk: Report

NEW YORK — Shares of Minneapolis-based Supervalu rose significantly on Friday amid speculation the company might be an acquisition candidate, according to Bloomberg News Service here

NEW YORK — Shares of Minneapolis-based Supervalu rose significantly on Friday amid speculation the company might be an acquisition candidate, according to Bloomberg News Service here.

Shares climbed 5.9% to close at $17.01 after rising to $17.89 earlier for the biggest intraday gain since April 2009, with trading of calls to buy the stock jumping to 36,000 contracts, also the most since last April, Bloomberg noted.

Mario Barraza, a New York-based analyst with Kevin Dann & Partners, said the shares were up on rumors of a leveraged buyout — though with $8 billion in long-term borrowings and a total debt-to-capital ratio of about 77%, other analysts quoted by Bloomberg doubted an LBO was likely. Bloomberg quoted one consultant as suggesting a buyer could sell the retail stores and use the proceeds to pay down debt to allow Supervalu to focus on its wholesale distribution business.

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