SuperValu Spikes on Buyout Rumors
NEW YORK (
) --
SuperValu
(SVU)
is spiking on rumors of private equity interest in the grocer.
SuperValu shares reached $17.89 earlier in the day, their highest point in eight months, before falling back a bit to $16.91.
|
Since SuperValu CEO Craig Herkert took the reins in May, SuperValu has been cutting costs by shedding stores and reducing the number of products it carries.
Elsewhere in the retail sector, takeover speculation surfaced for video game retailer
GameStop
(GME) - Get Report
. The news sent its stock up 6% on Thursday to $19.35. It fell slightly this morning and is currently exchanging hands at $19.24.
"The company generates strong free cash flow and is not getting respect as a public company," Sterne, Agee & Leach analyst Arvind Bhatia says. Thus, a takeover by a private equity firm, according to Bhatia, would make sense.
GameStop declined to comment on the rumors.
-- Reported by Jeanine Poggi in New York.
>>GameStop Gains on Takeover Rumors
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