Leonard Green Still Interested In BJ's Wholesale (BJ)

According to a report from the NY Post, Leonard Green & Partners is still interested in acquiring BJ's Wholesale (NYSE: BJ), and shares are up 8% in pre-market trading on this news.

"If it gets to mid-January and a sale has not started, there may be difficult conversations," according to a source close to the situation. The source also said that Leonard Green has "made it clear they have the potential to go hostile" for BJ's.

Many had thought that after Leonard Green purchased Jo-Ann Stores (NYSE: JAS) for $1.6 billion, and partnering with TPG to acquire J. Crew for $3 billion, that it may have its hands full. According to additional sources, Leonard Green still has $5.3 billion to put to work that it raised in 2007.

Neither BJ's or Leonard Green commented on the report.

Jefferies analyst Daniel Binder says a deal could happen.
"I think a takeout in the $50 to $55 range still makes a lot of sense," Binder said.

Shares of BJ are up $3.53 in pre-market trading to $48.00, a gain of 7.94%.