Cerberus Capital Management is working on a takeover bid for troubled supermarket operator Supervalu Inc. and has held talks with lenders to line up financing, according to three sources familiar with the matter.
Debtwire earlier reported that the private equity firm was pitching a handful of banks to arrange $4 billion to $5 billion in debt financing to back a bid, sending Supervalu's shares up more than 40 percent on Monday.
JPMorgan Chase & Co (JPM.N) and Bank of America (BAC.N) are among the banks considering a syndicate, Debtwire said. Both banks declined to comment. Cerberus did not immediately respond to a request for comment.
Supervalu, operator of the Jewel-Osco, Save-A-Lot and Albertsons chains, declined to comment beyond what it said last week: It has received several indications of interest and was in "active dialogue" with several parties.
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