Supervalu says sale talks ongoing with several parties
(Reuters) - Supervalu (SVU.N) said it remains in talks with several parties, after its shares slumped more than 18 percent on a Thursday report that Cerberus Capital Management was having difficulty obtaining financing to buy out the troubled grocery chain.
Supervalu, in a statement, said it is in "active discussion with several parties," but it remains uncertain whether the talks will result in any transaction, or change in overall structure or business model.
Bloomberg reported earlier on Thursday 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.
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 (GS.N) and Greenhill & Co Inc (GHL.N) to explore strategic alternatives.
(This story has been corrected to fix spelling of Supervalu in second paragraph)
(Reporting By Olivia Oran, additional reporting by Lynn Adler; Editing by Leslie Adler)
- A top Federal Reserve official who is sometimes seen as a bellwether for U.S. monetary policy on Monday offered his voice to a growing contingent at the central bank that has argued for reducing the Fed's bond buying at a meeting next week.
SAN FRANCISCO - At Pinterest, the four-year-old online bulletin board service that is valued near $3.8 billion, some 70 percent of the users are female. But the company's board of directors is 100 percent male. | Video
BEIJING/HONG KONG - China reiterated its opposition on Thursday to a European Union plan to limit airline carbon dioxide emissions and called for talks to resolve the issue a day after its major airlines refused to pay any carbon costs under the new law.