From Deseret News archives:
Albertsons' shares plunge after sale negotiations end
Negotiations with a group of investors including Supervalu Inc. and CVS Corp. concluded because "we did not get a bid we could accept," Albertsons spokeswoman Shannon Bennett said late Thursday. The company said it is in discussions about selling some assets.
Albertsons is losing market share to Wal-Mart Stores Inc. after the discounter expanded to more than 1,000 supercenters that offer low-priced groceries. Albertsons may sell underperforming stores to improve profit at the company's remaining operations.
"The shareholders are giving this a huge Bronx cheer," said David Dietze, president of Point View Financial Services, based in Summit, N.J., which manages about $100 million, including Albertsons shares. "Shareholders are voting today in the market."
Shares of Boise-based Albertsons dropped $2.74, or 11.8 percent, to close at $20.54 Friday on the New York Stock Exchange, falling below the price the stock was trading at before the company put itself up for sale on Sept. 2.
JPMorgan Chase & Co. analyst Stephen Chick Friday downgraded the stock to "underweight" from "neutral," and BB&T Capital analyst Andrew Wolf cut his rating to "hold" from "buy."
A group including Supervalu, the owner of Save-A-Lot and Shop 'n Save stores, agreed with Albertsons to end acquisition talks. CVS, the No. 2 U.S. drugstore chain, ended discussions to buy Albertsons' Sav-on and Osco drugstores, the companies said in statements Thursday.
Supervalu spokeswoman Haley Meyer declined to comment.
"I think they are just middling on price, and they will end up with a dollar more and it will get done in a week," said Gary Giblen, head of research at Brean Murray & Co. in New York. "I don't think they have any intention of doing anything, but trying to shake more money out of the consortium. This is just a colossal negotiating ploy."
The New York Times reported Thursday that Albertsons' board rejected a $9.6 billion takeover offer from investors including CVS, citing unidentified people close to the negotiations.
Comments
- 'Dancing' will fill out finale 12:13 a.m.
- Tuesday on TV 12:13 a.m.
- I'll take doc's advice on mammogram 12:12 a.m.
- Editorial: Winning fans' hearts 12:11 a.m.
- Afterthoughts 12:11 a.m.
- Letters: Rushing to judge Palin 12:11 a.m.
- Letters: Barzee case like Jeffs' 12:11 a.m.
- Letters: Trump card for believers 12:11 a.m.
- Letters: Can't erase genetics 12:11 a.m.
- Letters: MLS not BCS 12:11 a.m.
- Real Champions
- Bronco, Kyle rubber match
- Protests against Phoenix LDS temple
- RSL wins MLS Cup on penalty kicks
- BYU's Lamb, Jorgensen reprimanded
- Plenty on line for rivalry game
- Time for big matchups in WAC, MWC
- BCS at-large bids up for grabs
- Hall, Johnson matchup key
- Is talking about religion taboo?
- Glenn Beck to enter politics?
212 - RSL wins MLS Cup on penalty kicks
195 - Palin plans tour stop in Utah
178 - Palin's book shows she's unqualified
132 - BYU records with win
132 - Bronco, Kyle rubber match
130 - Protests against Phoenix LDS temple
109 - Officer cleared in Cardall Taser case
103 - BYU cuts Women's Research Inst.
103 - Jazz finally win in San Antonio
99
Associated Press Personal Finance Writer Candice Choi offers gift-giving...
I hope Donny wins. His humility, courage and humor are very refreshing....
but it is Provo's Craig Drury polishing his 8 rings as head coach.
Like the newspaper said, "...the first time since '84 national...
I think Mya did not deserve the nine's from the 3 judges on her free dance -...
College football will NEVER revert to the old bowl system. It has gone too...
We don't need another layer of government, which obviously represents more...
And this surprises someone? It's too easy in Utah to deceive the masses....
We cannot afford this monstrosity! Any claims that it will save money are...
I grew up in SLC and have always been a huge BYU fan. Honestly I can say most...
These are not essential government programs needed to ensure our national...


You can be the first to comment on this story.