Foot Locker Shares Climb 10% on Report of Possible Buyout

Foot Locker Inc. shares jumped 10% on Monday, lifted by a report that private equity heavyweight Kohlberg Kravis Roberts & Co. is the front-runner to acquire the athletic shoe chain.

Kohlberg Kravis Roberts may bid for Foot Locker with private equity investor Apollo Management in the next two to three weeks at a price that could top $30 a share, Women’s Wear Daily reported Monday. Buyout speculation has surrounded Foot Locker for several weeks.

Foot Locker shares rose $2.48 to $27.32.

A spokeswoman for Kohlberg Kravis Roberts declined to comment, and a representative for Foot Locker wasn’t immediately available to comment.

Retailers have attracted buyout interest from private equity groups in recent months for their real estate holdings and strong free cash flow. Over the last year, private equity players have taken over Neiman Marcus and Linens ‘n Things.

Kohlberg Kravis Roberts in 2005 was one of several investors that acquired Toys R Us in 2005 for $6.6 million.

New York-based Foot Locker operates about 4,000 stores in North America, Europe and Australia as Foot Locker, Lady Foot Locker and other brands.

In May, the company reported quarterly profit of $59 million, or 38 cents a share, up from $58 million, or 37 cents, a year earlier. Sales declined nearly 1% to $1.37 billion.