Published Date:
19 August 2008
THE consortium that was rebuffed following its approach for Woolworths is expected to make a second bid.
A consortium headed by Iceland founder Malcolm Walker had made an approach to acquire Woolworths' 815 retail stores.
Its initial approach, thought to be around £50 million, was rejected because it undervalued assets and involved a restructuring that Woolworths said was "not achievable". But now the consortium is thought to be trying to force directors to reopen negotiations.
The consortium includes investment firm Baugur, which has a ten per cent stake in Woolworths. It is trying to win the support of other investors to create a "bear hug" on directors.
Meanwhile, Woolworths is expected to announce next month that its pension deficit has doubled to nearly £100m.
A triennial actuarial valuation of the scheme is due to be completed and the deficit is expected to rise from £48.2m.
Chairman Richard North believes the struggling group can still be turned around.
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Last Updated:
19 August 2008 9:55 AM
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Source:
Edinburgh Evening News
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Location:
Edinburgh
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Related Topics:
Woolworths
