Report: Supervalu in Buyout Talks


Following weeks of speculation, a spokesman for Supervalu, parent company of Albertsons, said late today that it had received a "number of indications of interest" in a possible buyout.

The news was met by a slight increase in Supervalu's stock value on the New York Stock Exchange. Supervalu closed at $2.14 cents a share. But that's dismal compared to November 2007, when Supervalu traded at nearly $42 per share.

Bloomberg News reports that Supervalu released a statement saying it was in an "active dialogue" with several parties regarding options, including buyouts. Supervalu purchased the Boise-based Albertsons chain in 2006.

In July, Supervalu announced that its earnings had fallen 45 percent in its latest quarter and would suspend its quarterly dividend. Supervalu said it had planned to achieve $250 million in administrative and operational expense reductions over the next two years through a "leaner, more efficient organization."

Supervalu dragged its Boise operations through a series of layoffs, including a round of finance department redundancies in January 2010, outsourcing of information technology positions in October 2011, and 130 more corporate positions this past February.

In all, Supervalu owns 33 Albertsons stores in Idaho, employing approximately 3,300 people in the Gem State.