A Safeway buyout report seemingly sparked a jump in share values Wednesday, according to Yahoo! Finance on Oct. 23. The movement was spurred by a Reuters report indicating several buyout firms are eyeing a deal to acquire part or all of the Safeway Inc. chain.
If the Safeway buyout report pans out to be accurate, the deal could be one of the largest of its nature since the current financial crisis began. None of the reported players are commenting on the record at the moment, but the private equity firm Cerberus Capital Management LP is said to be one of the interested parties.
Safeway has been working to brace itself against the possibility of a hostile takeover, and it is said they are currently reviewing options with advisor Goldman Sachs. Safeway is facing stiff competition in the market and has been making changes to try to stay competitive.
Cerberus already has a large interest in the grocery store market. They have purchased a chunk of Supervalu Inc. stores this year, including numerous Albertsons and Jewel-Osco stores. In addition, they already had 650 Albertsons stores from a deal in 2006.
Whether Cerberus or another investor is able to move forward with a deal remains to be seen, but the Safeway buyout report is definitely garnering buzz in financial circles.