US: Kroger cheapest large retalier due to recession
Kroger, which has increased sales in every year since at least 1987 even as Target Corp. and Wal-Mart Stores Inc. grabbed market share from other supermarkets, may now become a target for retailers outside the US or private equity firms, according to Northcoast Research Holdings LLC. Valued at $13.7 billion last week, Kroger could still attract a takeover offer 30 percent above its current price, Point View Wealth Management Inc. said, making it the largest grocery acquisition on record.
“Of the traditional pure-play grocery stores, Kroger is the crown jewel,” David Dietze, president and chief investment strategist at Summit, New Jersey-based Point View, which owns shares of Kroger, said in a telephone interview. “They have a long consistent record of positive same-store sales performance. It’s timely to acquire Kroger because it’s cheap.”
Keith Dailey, a spokesman for Kroger, said the company doesn’t comment on rumour or speculation.
Shares of Kroger climbed as much as 1.1 percent today and closed 0.6 percent higher at $24.06 in New York. That was the fifth-biggest gain among 42 companies in the S&P 500 Consumer Staples Index.
Source: www.bloomberg.com
