<p style="text-indent:0px; line-height:12px;"><span style="font-weight:bold;">New York, NY -</span><hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">By Jordan Okumura<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">01.04.12</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p>The rumors may be true. Cerberus Capital Management and Supervalu Inc. are close to a deal, according to an article in the Wall Street Journal. The details of the deal state that the buyout firm and its partners will buy some parts of Supervalu and take a stake in others. Shares initially soared up to $2.82, up nearly 9%, when talk of deal began to circulate, but then the stock quickly plunged back lower. Shares have since risen and are recently up 9.3% to $2.83.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><img src="https://cdn.andnowuknow.com/legacyWriterImages/SuperValu_Cerberus_BODY.jpg" alt="images010413" /><hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">The deal would not be a straightforward buyout but a deal in which Cerberus would buy some parts of Supervalu and taking a stake the remainder, which is expected to remain public. A deal could be announced as soon as next week. The article attributed the information to a person with knowledge of the plan. Cerberus would contribute around $500 million in equity which is a substantial several hundred million less than initially discussed.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">The structure of the deal is designed in part to create a solution surrounding how much cash Cerberus was willing to put up and the amount of cash that banks arranging financing for the deal have desired for Cerberus to commit.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Mike Siemienas, Media Relations, Supervalu, told AndNowUKnow when asked to comment, "The review of strategic alternatives is proceeding. The company continues to be in active discussion with several parties. There can be no assurance that this will result in any transaction or any change in the companies overall structure or its business model."<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Cerberus declined to comment.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href="http://blogs.wsj.com/deals/2013/01/04/cerberus-supervalu-close-to-deal/?mod=wsj_nview_latest" target="_new"> Cerberus </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">
