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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (36955)	3/12/2010 7:52:05 PM
From: E_K_S	Respond to of 78750

RE: SUPERVALU Inc. (SVU) Supervalu jumps amid leveraged buyout chatter CHICAGO, March 12 (Reuters) - Shares of Supervalu Inc shot up more than 11 percent in heavy trading on Friday morning as rumors circulated that the supermarket operator could be poised for a leveraged buyout. Shares reached $17.89, their highest level since June, before retreating a bit to trade up nearly 6 percent at $17. "It's another takeover du jour story," Jud Pyle, chief investment strategist at Options News Network, a division of option market making firm PEAK6 Investments in Chicago, said in reference to trading in Supervalu. *"The rumor making the rounds is that Supervalu could be the target of a leveraged buyout. Rumor is they could fetch $22.50 a share."* A spokesman for Supervalu, which runs grocery stores under names such as Albertsons and Jewel-Osco, said the company does not comment on rumor or speculation. The March and April call options allowing investors to buy Supervalu shares at $17.50 each are trading briskly, as logic would dictate, Pyle said. Minneapolis-based Supervalu named Craig Herkert as chief executive officer in May. One of the first tasks for Herkert, who was Wal-Mart Stores Inc's CEO of the Americas region, was reviewing Supervalu's operations. Since Herkert joined, the company has announced plans to sell some stores, remodel others and expand its lower-priced Save-A-Lot format. (Reporting by Jessica Wohl and Doris Frankel in Chicago, Blaise Robinson in London; Editing by Derek Caney) ((jessica.wohl@thomsonreuters.com +1 312 408 8132; Reuters Messaging: jessica.wohl.reuters.com@reuters.net)) ((See blogs.reuters.com for Shop Talk -- Reuters' retail and consumer blog.)) Keywords: SUPERVALU/ Thomson Reuters ========================================================== Analyst says deal unlikely due to company debt load EKS