The apparent financing difficulties are certainly not a positive development for an SVU deal being closed in the near term, but investors should not overreact. Investors actually learned how close Cerberus is to buying Supervalu. The fact that the financing difficulties appear to be the limiting factor means that Cerberus really wants to get a deal done -- and must believe that there is a lot of value to be unlocked by acquiring Supervalu. If Cerberus's diligence leads to such a conclusion, the rest of the suitors may feel the same way, and other firms may be willing to structure a deal differently (i.e., requiring less outside financing) than Cerberus intends to, leading to the ability to close on Supervalu even if Cerberus is forced to walk away. Supervalu can get some sort of deal done (or can create value for shareholders by slowly improving operations if a deal does not occur). Bottom line is to stay LONG. . . there is money out there for shareholders. . . do not despair. . .
deal is certain but shareholders get pennies... shareholders have no hand ...if no deal then we are talking bankruptcy and everyone knows that ...thats why cerberus will offer .50-.75 a share
I agree. I looked into a pre-packaged bankruptcy , it cant be done without the aproval of the stockholders.it is basicaly a reorganization of all debts. And i asume it would redo alot of union contracts too.and it could also evetualy raise the stock price to longs to around $23. I suggest we "hold" and see.