Supervalu Jumps After Report That Onex May Buy Save-A-Lot Chainby
Supervalu Inc. shares gained as much as 9.6 percent on a report that private equity firm Onex Corp. may acquire the company’s Save-A-Lot discount chain.
Reuters reported that Toronto-based Onex made the best offer for Save-A-Lot, which Supervalu had been considering spinning off. Supervalu is expected to make a decision on what to do with the business in the next two weeks, the news service said, citing unidentified people familiar with the situation.
It isn’t clear how much Save-A-Lot could fetch, but it has previously been valued at as much as $1.8 billion, Reuters reported.
Supervalu, based in Eden Prairie, Minnesota, rose as high as $5 in the wake of the report, its biggest intraday gain since Aug. 15. The stock had been down 33 percent this year before the rally.