Cerberus Interested in Supervalu, Navistar Might Divest Units: Merger and Acquisitions Update

Rumors that private equity Cerberus is interested in purchasing Supervalu (NYSE:SVU) have been confirmed by the Wall Street Journal; the prospective buyer is collaborating with real estate companies on an offer that could exceed $5 billion. Supervalu’s debt is said to be around $6 billion. However, part of such a proposal would include between $800 million and $900 million to take Supervalu private, which far exceeds its $643 million market cap. Cerberus, along with its partners, which include Kimco Realty Corporation (NYSE:KIM), expect to repeat the turnaround success they saw with the Supervalu peer Albertsons.

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Truck and engine maker Navistar International Corporation’s (NYSE:NAV) interim Chief Executive Lewis Campbell said on Monday that his company would consider selling any part of the firm as it tries to return to profitability. Navistar is halfway through a comprehensive review and “might try to monetize” any division that does not improve in a timely fashion.

Allergan (NYSE:AGN) reports in its conference call that it’s looking at strategic options for its obesity intervention unit, which include a potential divestiture of the business division. However, if such an option is pursued, the firm will offset any potential earnings dilution related to the deal.

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