Coles Myer, Australia’s second largest retailer, says that its board will meet today to consider a “highly conditional offer” that it has received for the business, and that the board will not be rushed into making a decision.
While the retailer did not name the consortium that made the offer, published reports have said that investment firm Kohlberg Kravis Roberts & Co. (KKR) is leading a consortium of private equity firms that also includes Texas Pacific Group's Newbridge Capital, Carlyle Group and CVC Capital Partners. The bid reportedly is in the neighborhood of $11 billion (US).
KKR was just one of the companies mentioned when it became public that Cole Myer was the object of interest for some acquiring company; Wal-Mart and Tesco were prominently mentioned as other possibilities, though there has been no confirmation of their specific interest.
While the retailer did not name the consortium that made the offer, published reports have said that investment firm Kohlberg Kravis Roberts & Co. (KKR) is leading a consortium of private equity firms that also includes Texas Pacific Group's Newbridge Capital, Carlyle Group and CVC Capital Partners. The bid reportedly is in the neighborhood of $11 billion (US).
KKR was just one of the companies mentioned when it became public that Cole Myer was the object of interest for some acquiring company; Wal-Mart and Tesco were prominently mentioned as other possibilities, though there has been no confirmation of their specific interest.
- KC's View:
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All reports to this point suggest that KKR is only interested in a friendly takeover, and if the Coles Myer board isn’t interested, then KKR will walk away.
The question is whether other possible suitors will feel the same way, or whether the window will now be open to more aggressive moves.
