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
- Birthdays for Monday, Nov. 16 9:50 p.m.
- Attorney to write book about sniper 9:49 p.m.
- Police seek clues in Crawford case 9:48 p.m.
- Blushing Boss at a loss 9:48 p.m.
- Immigrant tuition bill gets push 9:42 p.m.
- U.S. help has strings attached 9:42 p.m.
- Photo: Fort Hood victim mourned 9:41 p.m.
- Unhappy holidays for charities? 9:41 p.m.
- Teenage boy shot in the leg 9:32 p.m.
- Jazz notes: Young bigs ride bench 9:27 p.m.
- BYU happy to escape with victory
228 - TCU creams U.
222 - Editorial: Mormons and gay rights
206 - Will state consider gay rights law?
149 - Letters: Strange breed in Utah
133 - Can BYU root for (ick) Utah Utes?
131 - RSL heads to MLS title game
124 - Utes remain silent about BCS
120 - Celtics crush Jazz
104 - TCU stays 4th in AP; Y. 19th, U. 23rd
90
Sears is holding a special VIP night Sunday, Nov. 15, in stores and online.
Maybe someone out there can help me understand how raising the state...
TCU's footballers aren't any better than BYU's or Utah's, but they are better...
Hey all of you 2A teams and fans. Is San Juan so predictable? Im not sure....
BYU has been up and down under the watch of Bronco. IF I hear them say "its...
Thank you Jerry Sloan for 20 years of coaching the Jazz. But it is time to...
2004 was our year. 2008 was our year. 2009 looks to be TCU's year. I say...
True, football does make the most money and it has traditionally drawn the...
You summed it up perfectly -- also my reasons for voting ABB next year --...
Why add Sand Diego or UNLV? If you are adding programs becase they have been...
What about loyalty and committment? The schools that broke away from the WAC...
@Christy Sorry I missed the quotation marks You might add @ the original...


You can be the first to comment on this story.