Supervalu says evaluating sale of Save-A-Lot

Supervalu Inc said On Tuesday it is evaluating a sale of its Save-A-Lot business, among other efforts to separate the discount grocery chain from the company.

Shares of Supervalu rose 4.6 percent to $4.56 in light after market trading on Tuesday.

Supervalu announced its intention to separate Save-A-Lot in January as bigger rivals such as Wal-Mart Stores Inc, have been increasing their focus on selling groceries.

"Supervalu is... prepared to consider other alternatives to improve stockholder value, and in this regard is also evaluating a possible sale of Save-A-Lot," the company said in a statement late on Tuesday.

Some of the world's largest buyout firms are preparing offers for the Save-A-Lot business, making an outright sale of the U.S. discount grocery chain more likely than a spin-off, Reuters reported on Friday, citing people familiar with the matter.