10 September 2008
HOSTILE BID FOR WOOLWORTHS EXPECTED
Thanks to everyone who took the time to vote in this weeks poll.
The result of the poll indicates that 95% of investors believe that the bid for Woolworths will turn hostile.
Woolworths Group plc, currently under offer by a consortium headed by Malcolm Walker, the founder and chief executive of the Iceland Frozen Foods supermarket chain, is due to report its results next week. The expectation is that the results will be poor, but Woolworths, firmly at the cheap end of the retail market, ought to do better than most in the face of the slowdown. If Woolworths sales are not doing better than the high cost retailers such as Marks and Spencer and Sainsbury's then it will be difficult for the company to survive in its current form.
Unfazed by the gloomy UK economy, Walker sees a boom in frozen foods and expects to open more that twenty new Iceland stores a year. It is this level of confidence that Woolworth’s needs to project if it is to ride the recession.
If, after rejecting Walker's first bid for the company in August the Woolworth's board turn Walker away a second time, it is probable that the bid will turn hostile, and we could see Iceland stores popping up in Woolworth's by Christmas.
Woolworth’s interim results are due to be released on Wednesday 17th September 2008.
Good Luck and please feel free to leave a comment
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