How many more bids on the way for Coles Myer?
IT WOULD be amazing, unbelievable in fact, if the Kohlberg Kravis Roberts consortium has made its best and final offer first, and then meekly went away when told to. This will not happen: the only question is whether there are one or two more offers from the Nine Equiteers (the average is about 2.5 offers per takeover), and whether they end up above $16. At about $13.60 yesterday, Coles Myer is a three-month profit of at least 15 per cent waiting to happen, so the hedge funds will soon own enough stock to deliver the company to their brethren in private equity, which is something the posse well knows and is counting on. So not only is there likely to be another bid, it is likely to succeed. Australia’s largest retailer is, in my view, already halfway through the back of the wardrobe, into the perpetual darkness of private equity land. It would also be amazing if the Equiteers waited until after September 21, when Coles CEO John Fletcher is due to update (or rather improve on) his disma
