WHS - Warehouse Group

**Sideshow Bob** · 07-06-2006, 06:16 PM

[quote]quote:Originally posted by Westie
From Bloomberg

Foodstuffs expects Tesco, Britain's biggest retail, or Wal- Mart, the world's largest, to expand to New Zealand within three years, Tony McNeil, managing director of the grocer's Wellington cooperative, told the New Zealand Herald this week.

Surely must expect Tesco/Walmart to enter Australia first, and don't believe Tesco at least have said they are looking at this. They are just starting off in the States, and still battling with the others in China to grow as fast as possible.

Aldi have been in Australia for a number of years, and don't believe have been that succesful - although not to the same scale as a Tesco/Walmart/Carrefour.

Rumours have been around for a couple of years that Costco are coming - but.......

**rmbbrave** · 07-06-2006, 07:44 PM

I bought into the WHS @ 3.95 just a month ago hoping for a slow and steady rise.

Not in my wildest dreams did I think I'd get 30% so quickly.

**duncan macgregor** · 07-06-2006, 08:44 PM

quote:Originally posted by rmbbrave

I bought into the WHS @ 3.95 just a month ago hoping for a slow and steady rise.

Not in my wildest dreams did I think I'd get 30% so quickly.

Another poster that sold out today was my old mate SNOOPY. Well done SNOOPY you lucky bugger. MACDUNK

**SueJ** · 07-06-2006, 09:35 PM

Presumably Foodstuffs want 10% to block a takeover by another player.

Foodstuffs are a cooperative not a corporate. They do supermarketing REALLY well, but they don't necessarily have clue 1 about buying companies.

**Halebop** · 07-06-2006, 11:18 PM

quote:Originally posted by SueJ

Foodstuffs are a cooperative not a corporate. They do supermarketing REALLY well, but they don't necessarily have clue 1 about buying companies.

Agree with Belg here. On the flipside, Warehouse are a corporate, not a co-op, yet managed to stuff up their acquisition strategy.

The shareholding is a spoiler in more ways than one. Even if Foodstuff's paid too much, they have dealt themselves a hand at the table for just $150m. That's a pretty cheap insurance policy in comparison to the size of the grocery sector and the threat of WOW or someone else becoming an "integrated" competitor. It both reduces the attractiveness and increases the takeover price to an acquirer like WOW by attaining a blocking stake. Tindal would have to be pee'd off a key competitor has made any exit strategy on his part that much harder.

I'm more surprised Foodstuffs bought the shares in this manner. I suspect they could have built a 10% shareholding without paying such a high average price. Something must have made them jump - hopefully not the brokers sales pitch!

**barnsley bill** · 07-06-2006, 11:30 PM

quote:Originally posted by belgarion

quote:Originally posted by SueJ

Presumably Foodstuffs want 10% to block a takeover by another player.

Foodstuffs are a cooperative not a corporate. They do supermarketing REALLY well, but they don't necessarily have clue 1 about buying companies.

I need to be careful about what I say here ...

1) Foodstuffs are a 'retailer'. Historically they have done food ... ('nuff said)
2) Yes, while a co-op, they have recognised a need to act like a 'company'
3) In Europe, many of the big players in the FMCG (Fast moving cheap goods) markets are co-ops.

... Underestimate co-ops ... and Foodstuffs ... at your peril ... Just by way of parallel, some of the biggest insurance companies are 'mutuals' ... same sort of concept but in this case a bit different.

Agreed...........
I need to be careful about what I say here ... SERENE

Smart move to block, and recent attacks from Australia have seen our listed companies undervaued and open to attack..

**Halebop** · 08-06-2006, 12:28 AM

quote:Originally posted by belgarion

Disagree ... I suspect Tindall would be quite pleased.

If his objective is to hold until the day he dies then it makes no difference. If he wants to exit to a would be acquirer but Foodtuffs doesn't want to buy the whole company then their blocking stake reduces the takeover premium. This isn't something to be pleased about, especially when they time the move to overshadow with the launch of WHS' 1st supermarket.

quote:Originally posted by belgarion

With regards FS buying in this manner ... Hmmm ... sometimes annoucing your intentions in a big way is a great marketing ploy ... Sure they could have built a 5 percent stake and then made a stand ... This way, IMHO, is better ... Pak'n'Save has many followers - including me ... (tightwad kiwi of Scottish forbears that I am.

I'm not sure that being a follower of Pak'n'Save is going to induce a fund manager or small shareholder to sell their Warehouse shares to them. The tightwad in me says buy the shares cheaply, not at a 25% premium to market. If they got caught short by another predator amassing a stake then they could still buy on market with a $5.00 stand in 3 months time and not have give away an acceleration clause to boot.