Shares of BJ's Wholesale Club (NYSE: BJ) are surging this morning after the New York Post reported that a private equity firm may launch a hostile bid for the warehouse retailer.
The stock is up about 6.9 percent as of 10:52 a.m. (EDT).
According to the Post, Los Angeles-based buyout firm Leonard Green & Partners (which revealed it had a 9.5 percent stake in the company in July) is interested in pursuing a takeover bid if an auction doesn’t commence in the coming weeks.
A source told the paper, if it gets to mid-January and a sale has not started, there may be difficult conversations,
In November, BJ’s Wholesale retained Morgan Stanley to explore “strategic alternatives” including a possible sale of the company.
BJ shares are up about 37.5 percent year-to-date through yesterday.