Two groups pick up the pieces of deals fallen apart, making headlines this morning.
Albertson’s has entered into negotiations with a consortium of bidders to rescue the ailing grocery group from falling earnings and increased competition from discounters.
After talks fell apart last month, a four-player team from private equity firm Cerberus Capital Management, real estate investment trust Kimco Realty Corp., and strategic bidders Supervalu Inc. and drug-store titan CVS Corp. returned to the negotiating table with a bid close to the last year’s original offer of $16 billion, including assumed debt, according to sources.
The No. 2 supermarket chain, second after Kroger Co. and just ahead of Safeway Inc. has seen troubled financial times as discount giants like Wal-Mart Corp., Target Corp. and Costco Wholesale Corp. have expanded their presence. Albertson’s share price has fallen from $60 1999 to $23 and change by close yesterday.
Other news brewing this morning reports that New York’s Nasdaq Stock Market Inc., the mostly tech-focused exchange, may be interested in a bid for the London Stock Exchange, according to a published report in the Wall Street Journal.
The LSE has repeatedly rejected a $2.7 billion, hostile takeover bid from Macquarie Bank Ltd. as too low, but the Australian competitor still has until Feb. 25 to raise its offer price. — Carolyn Murphy
Consortium revives Albertson's bid
Macquarie contiues pursuit of LSE
Today's Deals
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