US: Supervalu downplays Cerberus takeover talk

By Katy Askew | 7 January 2013

Supervalu "nearing" takeover deal

US retailer Supervalu has downplayed reports it is "nearing" a deal that would see Cerberus Capital Management buy some parts of the firm and take a stake in the rest of the company.

According to a Wall Street Journal report citing someone "familiar with the situation", Cerberus and Supervalu could potentially reveal a deal later this week.

Supervalu revealed last summer that it is conducting a strategic review of its business in response to falling sales and profits.

The group's share price spiked in response to the reports, rising from an open of US$2.61 on Friday to close at $2.94.

However, a spokesperson for the company remained coy on the prospect of a deal with Cerberus and told just-food the company is in talks with "several parties".

"The review of strategic alternatives is continuing. We are in talks with several parties and there is no assurance that these will result in any changes in the company's operations," the spokesperson said.

Sectors: Mergers & acquisitions, Retail