• Tue, Jul. 11, 11:20 AM
    • Shares of Whole Foods (NASDAQ:WFM) are showing some vitality off rumors of interest by Costco (COST +1%) in making a bid.
    • The chatter indicates that Costco is prepping for a $15B offer for the grocery store chain.
    • Whote Foods trades at $42.08 vs. the $42.00 deal price from Amazon.
    Tue, Jul. 11, 11:20 AM | 32 Comments
  • Fri, Jun. 16, 5:53 PM
    • Target (NYSE:TGT) could be the retailer most impacted by the huge Amazon-for-Whole Foods deal, some analysts argue.
    • The deal is bad news for TGT, according to Gordon Haskett Research Advisors, in light of AMZN's more affluent customer overlap with TGT and TGT’s struggles with its grocery business; the firm says TGT "should use today’s news to substantially accelerate its investments in price/grocery/store experience/e-commerce.”
    • UBS analysts view the deal as negative for TGT, "as it could further complicate efforts to gain traction creating a stronger, better-for-you good offering in its stores," adding that Costco's (NASDAQ:COST) “limited assortment, low cost structure, and deep private label penetration probably means its fortunes will be preserved, at least for the foreseeable future."
    • But today was a TGT buying opportunity for Jenny Van Leeuwen Harrington, portfolio manager at Gilman Hill Asset Management, as the pullback was "wildly overdone given the company’s health and premier position in a segment of the retail market that remains critical to the fabric of America’s shopping needs."
    • Gilman Hill also likes TGT’s free cash flow generation of more than $5/share, which also means the $2.36 dividend has "more than sufficient coverage as we look ahead."
    Fri, Jun. 16, 5:53 PM | 87 Comments
  • Jun. 14, 2012, 6:16 AM

    Costco Wholesale (COST) agrees to buy the 50% in Costco Mexico it doesn't own from joint-venture partner CCM for $760.4M. Costco Mexico will pay a dividend of $340.85M, 50% of which will go to Costco Wholesale and 50% to CCM. (PR)

    Jun. 14, 2012, 6:16 AM
  • Nov. 9, 2011, 2:03 PM

    Already having a big year, dealmaking in the grocery business is set to jump even more as regional players seek to size up. One firm on the radar screen is Supervalu (SVU), primed for acquisition or break-up as it tries to shed debt from its $12.4B purchase of Albertsons in 2006.

    Nov. 9, 2011, 2:03 PM