Supervalu Jumps After Report That Onex May Buy Save-A-Lot Chain

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.

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE