AUSTRALIA: Woolworths eyes Coles break-up - report
According to local reports, the CEO-designate of Australia's largest retailer, Michael Luscombe, told a private lunch held in Sydney yesterday (14 September) that a second bid for Coles Myer was believed to be "on the way", adding that Woolworths would be interested in joining the carve-up.
According to a report in the Sydney Herald, Luscombe was hosting a lunch for suppliers and executives of Big W general merchandise chain when he made the extraordinary offer.
Responding to questions from those in attendance, Luscombe reportedly revealed that the Woolworths board believed that US investment bank JP Morgan was putting together a consortium to bid for Coles Myer at between A$16.50 (US$12.40) and A$17.50 per share.
Luscombe continued that if the company were to be broken up, Woolworths would be interested in buying one of the parts. The Woolworths CEO did not specify which of Coles Myer's businesses they were interested in, but market commentators have suggested that it is likely eying Target or Officeworks as they each fit a gap in Woolworths portfolio.
However, the likelihood of Australia's competition tsar Graeme Samuel approving such a move seems questionable.
Coles Myer rejected a bid of A$14.50 last week.
Shares in the retailer increased 1.25% to close at A$14.64.
British baker Inter Link Foods had a turbulent year in 2006, ending potential takeover talks and appointing a new CEO. Joe Ayling interviewed the UK bakery's new chief, Chris Thompson, to find out his...
Coles chairman Rick Allert has visited the UK to meet with potential buyers for Australia's second largest retail chain, the Australian Financial Review reported today (5 March)....
Australia's largest retailer Woolworths is seeking acquisitions and has a team examining international opportunities, chief executive Michael Luscombe told ABC television's Inside Business programme. ...
Woolworths has reported a 28.1% jump in first half profit, news which prompted Australia's largest retailer to upgrade its full year guidance....
Lowering its earnings guidance in the face of a poor performance from its supermarket division, Australia's second largest retailer Coles has said that after several approaches the group has commenced...
According to a report in the Australian Financial Review, trade buyers including the likes of Carrefour, Tesco and Wal-Mart have joined private equity groups eyeing the possible takeover of Australia'...
Australia's largest food retailer Woolworths has reported a 16% increase in sales during the first half of the year, news that has prompted speculation that the company will lift its full year earning...
Australian chains Woolworths and Safeway have vowed to donate today's entire supermarket profits to farmers....
- General Mills sales woes continue - analysis
- Why personalisation will take-off in US food
- Comment: Meal kits in US - don't believe the hype
- US food next wave on display at Winter Fancy Food
- Analysis: Chocolate sector's deforestation pledge
- Kraft Heinz cuts jobs in US, Canada
- Mondelez set for union crosshairs next week
- Brazil seeks to cool concerns over meat probe
- Lactalis fails to hit threshold to delist Parmalat
- US meal delivery service Blue Apron buys BN Ranch