Supervalu Stock Rises on LBO Speculation

MINNEAPOLIS — Stock in Supervalu was up by more than 40% Monday, apparently driven by speculation of a leveraged takeover.

Published reports, citing Debtwire, said Cerberus Capital Management was seeking $4 billion to $5 billion in debt financing to back a takeover bid for Supervalu. Also Monday, an analyst for JP Morgan reportedly upgraded ratings of Supervalu bonds on the 50% chance of a leveraged buyout.

Read more: Supervalu Slows Price Cuts, Posts Loss

Supervalu last week acknowledged it was in discussions with several interested parties as part of its review of strategic alternatives but did not provide additional detail.

Cerberus was part of an investor group that previously acquired several hundred Albertsons stores in 2006, at the same time that Supervalu acquired most of the rest of the Albertsons chain. Cerberus continues to own the acquired Albertsons locations through Boise, Idaho-based Albertsons LLC.