Shares in embattled grocer Supervalu are soaring after Dow Jones' Sharon Terlep reports Cerberus Capital Management is in talks to buy the grocer (via Chicago Tribune's Ben Estes).
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The stock is up nearly +16 percent — after being literally the worst-performing major stock of 2012.
The deal would see Cerberus buy some parts of the chain outright and take a stake in the remainder, Terlep writes. The PE firm would contribute around $500 million in equity.
Supervalu shares have collapsed nearly 100 percent since their June 2007 highs thanks to competition from Walmart and Kroger.
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Ironically, the chain has also occupied a close-to-perennial spot on our most-shorted-stocks list. Looks like that move will not pay off.
Here's the chart:
