Cerberus leads race for Safeway

|About: Safeway Inc. (SWY)|By:, SA News Editor

Private-equity firm Cerberus is the leading bidder for Safeway (SWY), Bloomberg reports, adding to a Reuters article that the two are close to a deal.

The companies are still negotiating over price; Safeway's market cap is $9.09B.

The grocery chain said last week that it's in discussions to sell itself.

Other P-E firms are interested in buying Safeway in parts, although the company prefers to be sold in its entirety.

Cerberus is willing to bid higher than other potential suitors, because it believes it can generate cost savings via a tie-up between Safeway and Albertsons, which the P-E company already owns.