UPDATE 1-Supervalu sale talks with Cerberus stall -report
Nov 29 (Reuters) - Supervalu shares slumped more than 18 percent on Thursday after a report that Cerberus Capital Management was having difficulty obtaining financing to buy out the troubled grocery chain.
Bloomberg reported that potential lenders were concerned about Supervalu's ability to manage its debt load.
Reuters reported last month that buyout firm Cerberus was preparing a takeover bid for Supervalu, the third-largest U.S. supermarket chain.
If Supervalu does not sell to Cerberus, it may have to restructure on its own or sell off individual assets, which could have big tax consequences, Bloomberg said.
Supervalu declined to comment. Cerberus officials could not be reached immediately for comment.
Shares of Supervalu closed down 18.6 percent at $2.28.
Supervalu announced in July it was working with Goldman Sachs Group Inc and Greenhill & Co Inc to explore strategic alternatives.
- British Muslims blame jihadi subculture after beheading video |
- Islamic State threat 'beyond anything we've seen': Pentagon
- Israeli air strike kills three Hamas commanders in Gaza |
- U.S. aid workers who survived Ebola leave Atlanta hospital |
- National Guard to withdraw from riot-torn Ferguson, Missouri |