Supervalu Shares Are Exploding Higher

Shares in embattled grocer Supervalu are soaring after Dow Jones’ Sharon Terlep reports Cerberus Capital Management is in talks to buy the grocer (via Chicago Tribune’s Ben Estes).

The stock is up nearly +16 per cent — after being literally the worst-performing major stock of 2012.

The deal would see Cerberus buy some parts of the chain outright and take a stake in the remainder, Terlep writes. The PE firm would contribute around $500 million in equity.

Supervalu shares have collapsed nearly 100 per cent since their June 2007 highs thanks to competition from Walmart and Kroger.

Ironically, the chain has also occupied a close-to-perennial spot on our most-shorted-stocks list. Looks like that move will not pay off.  

Here’s the chart:


Photo: Yahoo

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