Albertsons close to being sold?

According to news reports, the 2nd biggest food chain may just be. The consortium that hopes to buy Albertson's includes the CVS Drug Store chain, which recently bought Eckerd Drugs and is very prominent here in Florida.

I've blogged about this before. The colossus known as Walmart is effecting the whole food store chain industry. Winn Dixie is in bankruptcy, companies like Albertson's find their profits stagnating. Walmart does have low prices, but if more stores fall by the wayside will this be good for consumers? Less competition is not a good enviorment for the consumer more times than not. Just look at Cable television before and after satellite television came into play.

Personally I don't do much shopping at Albertson's. Four of their stores are located within seven miles of my home but I rarely visit them except for specials. I find their prices too high compared to Winn-Dixie or Publix.

For better or for worse I guess we'll just have to live with fewer grocery store choices.

Open Post- Third World County, Basil's Blog, Cao's Blog,

BOISE, Idaho -- The group that tried to buy Albertson's Inc. late last year -- a deal rejected by the company's board -- was reportedly close to reaching a deal Sunday for the nation's second-largest supermarket chain.

The Boise-based chain was considering an offer from a group of companies and investment firms for at least $9.6 billion in cash and stock, The New York Times and The Wall Street Journal reported in Monday editions.

The consortium includes the Rhode Island-based CVS drugstore chain; Minnesota-based Supervalu supermarkets; Cerberus Capital Management, an investment fund; and Kimco Realty, a real estate investment company.

Supervalu and Albertson's disclosed Friday that talks had resumed after the group approached the company last week with a modified proposal. Albertson's did not return telephone calls from The Associated Press on Sunday.

Albertson's shares fell more than 10 percent after the company announced it had ended the December talks.

Some shareholders called for the resignation of Albertson's chief executive, Larry R. Johnston, a former General Electric executive who was brought in to revive the business.

Under the new proposal, the buyers plan to break Albertson's into three parts -- splitting the supermarket business in two and merging the drugstore business with CVS, The Times reported.

Supervalu supermarkets was expected to acquire the most attractive stores, and Cerberus Capital and Kimco Realty would take the rest and either resell or revamp them.

The group is expected to pay slightly more than $26 a share in cash and stock, The Times reported, citing people involved in the talks. CVS, Cerberus Capital and Kimco Realty are planning to contribute slightly more than $20 per share in cash, while Supervalu covers the rest in its stock.

Shares of Albertson's closed on Friday at $24.11, up 24 cents, or 1 percent, on speculation that a deal could be reached.

The possible sale comes as traditional grocers are under pressure from larger discount competitors like Costco and Wal-Mart Stores, which now has more than 1,000 supermarkets within its stores around the country.