Supervalu Inc. (SVU) is moving toward a deal to sell retail chains such as Albertsons and Save-A-Lot to Cerberus Capital Management LP after talks on a full takeover of the grocer stalled, said people with knowledge of the matter.
Save-A-Lot has also received interest from parties such as private-equity firm KKR & Co. (KKR), said one of the people, who asked not to be named because the process is private. Discussions on a Cerberus bid for the entire company stumbled as lenders balked at the financing terms, they said. Supervalu’s shares rose.
Now Cerberus may seek control of Albertsons and Save-a-Lot, the grocer’s two largest chains, and take an equity stake in what remains of Supervalu, said two people. Selling the chains would give Supervalu the cash to pay down some of its more than $6 billion in debt and allow the company to focus on selling or restructuring its nine other chains, they said.
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