NEW YORK, Oct 23 (IFR) - The cost of insuring Safeway Inc's
debt against default rose sharply on Wednesday on talk
that a handful of buyout firms are exploring a deal for all or
part of the supermarket chain.
Five-year credit default swaps widened by 50 basis points to
251 basis points.
Reuters reported late on Tuesday that buyout firms,
including Cerberus Capital Management LP, are interested in the
business, citing people familiar with the matter.
It could potentially shape up to be one of the largest
leveraged buyouts since the financial crisis.
Safeway, the second-largest US mainstream grocery store
operator with a market value of over US$8 billion, is not
running an auction currently, but is aware of the buyout
interest and reviewing options with advisor Goldman Sachs Group
Inc, the people said.