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Albertsons ceases for-sale talks |
12.30.2005
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BOISE, Idaho--After rejecting a $9.6 billion bid from Supervalu Inc., drugstore chain CVS Corp. and investors for its for-sale company, Albertsons Inc. terminated all discussions regarding the potential sale of the entire company Dec. 22, according to a company statement.
Albertsons said it was still in talks with "several parties" that might buy its underperforming assets, according to the statement.
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The announcement came after Supervalu, Cerberus Capital Management Inc. and Kimco Realty Corp. along with CVS offered about $9.6 billion in cash and stock for the company, which put itself up for sale in September. The group had planned to break Albertson's up into three parts by splitting the supermarket business in two and merging the drugstore business with CVS, reported the New York Times Dec. 22.
Other interested groups of private equity bidders included Kohlberg Kravis Roberts & Co., Apollo Advisors and Texas Pacific Group Inc.; and Thomas H. Lee Partners LP, Bain Capital LLC and Warburg Pincus LLC, which were working with Cincinnati-based Kroger Co. CVS joined Supervalu and investors because it wanted to buy some of its drugstores. Walgreen Co., Deerfield, Ill., was also a bidder.
The New York Times reported it was unclear why Albertsons decided to stop negotiations to sell the entire company.
Albertsons operates 2,300 stores in more than 30 states.
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