Toys R Us
has reportedly received takeover bids from two investment groups seeking to purchase all of the company.
Celebrated buyout firm Kohlberg, Kravis Roberts and an investment group headed by Cerberus Capital Management have each offered $5.5 billion, according to a Wednesday report in
The Wall Street Journal
Toys R Us, which saw its category killer status wiped out by low-cost competition from
and others, had been seeking a buyer for its toy unit since last August. The company had planned to focus on its fast-growing Babies R Us unit, but has since signaled a willingness to sell the whole company.
In an unrelated development, New Jersey-based Toys said Tuesday it would indefinitely postpone fourth-quarter and full-year 2004 earnings because of accounting issues related to leases.
Shares rose $1.20, or 5%, to $24.90 in the premarket.