Why Albertsons Rocketed Higher Today, Defying the Market Swoon
Albertsons Companies (NYSE: ACI) stock rocketed 8.3% higher on Tuesday as of this writing, defying the broader market swoon. On Tuesday, the grocery store powerhouse announced it would undertaking a "strategic review." That's usually code for being open to a sale of the company, or perhaps more financial engineering schemes to boost shareholder value. So it's no wonder this defensive consumer staples stock was flying higher on a risk-off day for the markets.
On Tuesday, Albertsons released a statement saying it had commenced a strategic review of its business, with the help of advisors from Goldman Sachs and Credit Suisse. In a press release, the company said, "The review will include an assessment of various balance sheet optimization and capital return strategies, potential strategic or financial transactions and development of other strategic initiatives to complement Albertsons' existing businesses, as well as responding to inquiries."
That appears to be corporate speak for, "we are looking to sell the company for an appropriate premium right now." But short of a sale, it appears as though other actions could be taken if there are no buyers.
Source Fool.com
