Coles drops as takeover fails

The Sydney Morning Herald released some more facts on the Coles takeover.

Below is an extract

The private equity consortium that wanted to take over Australian retail
group Coles Myer has abandoned the plan. Led by US-based Kohlberg Kravis
Roberts, it had bid up to $A15.25 per share, but was rebuffed by the Coles
board. News of the final rejection triggered selling by hedge funds of
Coles stock, which closed $A1.30 lower at $A13.20 on 19 October 2006.
Analysts are unsure as to whether other private equity groups will now
pursue a Coles buy-out or not. Any hostile bid would be very hard to pull
off. Coles chair Rick Allert had again stressed the conditionality of the
KKR offer and said it significantly undervalued the company

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