Supervalu attracting buyers for parts, not the whole

A Bloomberg story reported last week that Supervalu (Acme & Save-A-Lot in the Philadelphia market) has attracted buyers that are interested in parts of the company rather than the whole. Supervalu prefers to sell the entire company, and has extended the deadline for offers past the original October 15 deadline. It has been working with Goldman Sachs and Greenhill & Co. to find a buyer since mid-summer.

Bloomberg's sources say that KKR & Co., TPG Capital, Cerberus Capital Managment LP and billionaire Ron Burkle have expressed interest. Burkle and his company, Yucaipa Cos., helped A&P emerge from bankruptcy earlier this year.

Supervalu is the country's third largest grocery chain and has several retail banners, including pharmacies and a distribution business. In the last two years it has lost more than $2.5 billion over the past two fiscal years, and its market value has plummeted.

Many analysts continue to believe that Save-A-Lot may be Supervalu's most valuable asset, and the company's distribution business may also be attractive to buyers.