Following is the unofficial transcript of breaking news from CNBC's David Faber. All references must be sourced to CNBC.

DAVID FABER: Wanted to give you some breaking news. Potential M&A transaction. Advanced auto parts, an aftermarket retailer of automotive parts with over 3700 stores and a $5.2 billion market value, has hired Blackstone to explore a sale of the company, according to people familiar with the situation. The process is in relatively early stages and is largely confined to private equity firms that have previous expertise in retail. Bankers tell me at least three of the larger private equity firms are engaged in the exploration of bids and have sounded out banks to see what type of leverage could be arranged to finance any deal.

Advanced Auto is currently levered at about 2.5 times its ebita and bankers tell me debt could be taken up to as much as 5.5 or even 6 times ebita Any deal would be expected to come in at a premium of course over the current stock price which you see is now up sharply. It would be one of the larger lbo's if in fact it were to be done at that premium perhaps being as much as or more than $6 billion, we haven't seen many of that type or that size at least since the financial crisis. Of course at that size the stock of the company or any buyer would also require at fairly large equity check perhaps as much as $1.3 billion which could require two private equity firms to join forces for a bid or force them to at least try to raise additional direct investment from their limited partners something we have seen PE Firms do. But given the size perhaps makes the difficulty at bit higher of any deal.

It is still early in the sale process and there is no guarantee the current process will result in any transaction. Advanced Auto reported disappointing earnings on October 22nd for its third quarter as comp store sales declined by 1.8%. Sources tell me the company initiated the exploration for a buyer after reporting that quarter. The company expects to earn between $5.05 and $5.15 a share for 2012. A company spokesperson has not returned calls at this point.

About CNBC:

ith CNBC in the U.S., CNBC in Asia Pacific, CNBC in Europe, Middle East and Africa, CNBC World and CNBC HD , CNBC is the recognized world leader in business news and provides real-time financial market coverage and business information to approximately 390 million homes worldwide, including more than 100 million households in the United States and Canada. CNBC also provides daily business updates to 400 million households across China. The network's 16 live hours a day of business programming in North America (weekdays from 4:00 a.m. - 8:00 p.m. ET) is produced at CNBC's global headquarters in Englewood Cliffs, N.J., and includes reports from CNBC News bureaus worldwide.

CNBC also has a vast portfolio of digital products which deliver real-time financial market news and information across a variety of platforms. These include, the online destination for global business; CNBC PRO, the premium, integrated desktop/mobile service that provides real-time global market data and live access to CNBC global programming; and a suite of CNBC Mobile products including the CNBC Real-Time iPhone and iPad Apps.

Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site at