business news in context, analysis with attitude

Albertsons Inc. confirmed this morning that “it has received an offer for the purchase of the entire Company. The offer was received from a consortium that had previously submitted an offer for the Company in December.”

The Albertsons board has authorized management to negotiate with the consortium. The offer reportedly is for $9.6 billion – the same amount as the offer previously rejected – but with provisions that could make it more acceptable.

The Wall Street Journal previously reported that “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.”

Now, the Chicago Sun Times reports this morning that Supervalu could sell its Cub Foods stores in Chicago to the Cerberus hedge fund group so that it could be clear from a antitrust perspective to buy Jewel.
KC's View:
We think we speak for everyone when we say, just sell the damned thing. We’re getting tired of hearing about it and tired of writing about it.

We’d much rather read and write about how new management is going to reinvigorate the company.