Saturday, September 03, 2005

Albertsons Mulls Sale

Contending with sales that have lagged many of its rivals, Albertson’s said Friday it was considering putting itself up for sale.

The company said it is interested in pursuing “strategic alternatives” to increase shareholder value.

Albertson’s’ board retained Goldman and Blackstone as advisors.

Albertson’s (ABS) is second only to Kroger among U.S. supermarket chains.

You knew something was going to happen when a while back Goldman Sachs analyst John Heinbockel said Albertson’s continued lagging sales would put increasing pressure on earnings later in the year, despite cost cuts.

The company is recovering from a 5 month strike of 59,000 California workers.

We don't have coverage on ABS; on another note, we do like Whole Foods (WFMI).

We think Albertsons will in fact be sold; we'll let you know who's buying as soon as news surfaces.

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