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Reuters reports that "a sale of Supervalu Inc. heralds a break-up of the far-flung supermarket operator, with its diverse brands and assets sold to rival supermarket chain operators and private equity firms, according to people familiar with the matter.

"Buyout firm Cerberus Capital Management is preparing a bid for the third-largest U.S. supermarket chain, with an eye toward divesting the troubled company's assets to several parties interested in pieces, the people said."

According to the story, Cerberus is the only company considering a buyout of the entire Supervalu organization; it also says that Supervalu's board would still consider a piecemeal sale if it believes that will create more shareholder value.
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