The Wall Street Journal this morning weighs in on the revival of the once-dead deal to sell Albertsons to a consortium made up of Supervalu and several private equity investors.
The consortium, according to the WSJ, has “submitted a new bid to the board of the nation's second-largest traditional grocery store chain…(that) includes a new structure designed to lessen antitrust worries, which had derailed a deal that was just hours away from completion in December.”
Albertsons’ board met yesterday and is scheduled to meet again today.
The WSJ writes that “under the deal expected in December, drugstore chain CVS Corp. was going to buy Albertson's pharmacy business for as much as $4 billion; a group led by private-equity firm Cerberus Capital Management LP and Kimco Realty Corp. was going to buy groups of poorly performing Albertson's stores for the value of their real estate; and Supervalu was going to swap stock and cash for hundreds of Albertson's better-performing stores, including its Jewel stores in the Chicago area.”
The consortium, according to the WSJ, has “submitted a new bid to the board of the nation's second-largest traditional grocery store chain…(that) includes a new structure designed to lessen antitrust worries, which had derailed a deal that was just hours away from completion in December.”
Albertsons’ board met yesterday and is scheduled to meet again today.
The WSJ writes that “under the deal expected in December, drugstore chain CVS Corp. was going to buy Albertson's pharmacy business for as much as $4 billion; a group led by private-equity firm Cerberus Capital Management LP and Kimco Realty Corp. was going to buy groups of poorly performing Albertson's stores for the value of their real estate; and Supervalu was going to swap stock and cash for hundreds of Albertson's better-performing stores, including its Jewel stores in the Chicago area.”
- KC's View:
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We have to believe that a deal may be imminent. Albertsons wouldn’t seem to have a lot of choice in the matter, since its value must be going down with every day it isn’t sold. Management can’t seem to make up its mind about the future, saying one day that it was recommitted to its stores, customers and employees…and then turning around and reviving the deal.
Look for this deal to close. Any day now.
