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Published reports say that Kroger Co. is considering a bid for Safeway’s 113-store Dominick’s division in Chicago. The stores have been on the market for several months, after Safeway resolved a labor dispute by promising to try and sell the division.

Kroger opened two discount stores in the Chicago area last year, and it is believed that it could pick up Dominick’s for a relatively low price. Safeway bought Dominick’s for $1.85 billion in 1998, but it is not expected to get anywhere near that if it sells off the division.

Neither Safeway nor Kroger are commenting on the reports.

Other possible suitors: Nash Finch, Supervalu, Schnucks, and Roundy’s.
KC's View:
It was just a couple of weeks ago that many people believed that Ahold would be the perfect fit with Dominick’s…but you don’t hear that kind of speculation anymore.