Albertsons shares rise after sources tell Reuters the chain is being eyed by nation's top grocer.
PHILADELPHIA (Reuters) - Kroger Co., the largest U.S. grocery store, submitted a preliminary takeover bid for rival Albertsons Inc., competing against several private equity firms for the hand of the No. 2 U.S. grocer, sources familiar with the situation said Friday.
News that a bid was in the works sent Albertsons shares up 3.5 percent in after-hours trading on Inet Friday.
Albertsons put itself up for sale in September after struggling against competition from discounters such as Wal-Mart Stores Inc.
Despite its struggles, Albertsons could fetch more than $10 billion, plus the assumption of $6.5 billion of debt, analysts said.
Kroger and Albertsons declined to comment.
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