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The frenzied trading in Supervalu (SVU +28.8%) is tied in part to a note out to clients from...

The frenzied trading in Supervalu (SVU +28.8%) is tied in part to a note out to clients from JPMorgan citing a 50% chance for a leveraged buyout. The firm's stance is that Supervalu sits as a relatively easy target with its low-cost debt and real estate assets as it upgrades the stock to Neutral from Underweight.
Comments (3)
  • now that the stock has jumped 30%, the value of the LBO has diminished drastically all of a sudden

     

    it's as if JPM secretly wants to kill the LBO deal by pre-announcing it
    22 Oct 2012, 11:46 AM Reply Like
  • Don't buy that at all. The debt is $6 billion and the equity was $440 million before trading started today. Now the equity is $600 million. It's minor compared to the total capitalization on the deal. The real issue is who wants to take on the trouble with unions to deal with, pension liabilities, declining market share, ect. This minor stock price increase is nothing compared to the other issues.
    22 Oct 2012, 12:15 PM Reply Like
  • I am willing to believe that many shorts are getting squeezed out and are having to pay a premium to cover themselves.
    22 Oct 2012, 01:10 PM Reply Like
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