Cereberus, Others Circling Safeway

Cerberus Capital Management LP (New York) is rumored to be one of a number of buyout firms looking to acquire Safeway Inc. (Pleasanton, Calif.) in what Reuters reports could be one of the largest leveraged buyouts since the financial crisis.

Safeway is the second-largest U.S. mainstream grocery store operator with more than 1600 stores around the country and a market value of more than $8 billion. It is said to be and reviewing options with advisor Goldman Sachs Group.

Last month, activist investor Jana Partners LLC (New York) acquired a 6.2 percent stake in Safeway and began talks with Safeway management about reviewing strategic alternatives. In response, Safeway adopted a poison pill to prevent an unwanted takeover.

Earlier this year, Cerberus led a group of investors aquiring Albertsons and Jewel-Osco stores from Supervalu Inc. (Eden Prairie, Minn.) for $3.3 billion.