The takeover battle for Australian Leisure & Hospitality has taken a new twist with the news that supermarket group Woolworths has said it will try to block rival Coles Myer from buying the pub group.

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Coles Myer announced earlier this week a joint bid of A$3.35 (US$2.44) per share, higher than the Woolworths-led bid of $3.15 per share. However, now Woolworths has said it may use any ALH shares it can accumulate to vote against the Coles Myer bid, reported Dow Jones Newswires.


The board of ALH has recommended shareholders accept the Coles Myer bid in the absence of a higher offer.

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