Private equity firm Cerberus Capital Management LP and its partners are nearing a deal to purchase parts of Supervalu Inc, the Wall Street Journal reported on Friday, sending shares of the grocery chain up 15 percent. Cerberus and its partners will buy some assets of the company and take a stake in the remainder, which is expected to remain public, the newspaper said, citing a person with knowledge of the plan.Cerberus would contribute around $500 million in equity, several hundred million less than initially discussed, the Journal said. A deal could be announced as soon as next week but could still fall through, the newspaper added.Shares of Supervalu rose 39 cents to $2.98 on the New York Stock Exchange.A Supervalu spokesman said on Friday the company's review of strategic alternatives was proceeding and that it was in "active discussions with several parties." He failed to comment further.
SUPERVALU INC. (SUPERVALU) is a United States grocery channel. Shares of SVU traded higher by 16.22% or $0.42/share to $3.01. In the past year, the shares have traded as low as $1.68 and as high as $8.56. On average, 6063020 shares of SVU exchange hands on a given day and today's volume is recorded at 14635873.
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