RETAIL TRADE – AUSTRALIA

Budget blamed for retail slump

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Original article by Blair Speedy
The Australian – Page: 27 : 4-Jul-14

Australian retailers have blamed poor sales on the Federal Government’s May 2014 Budget. In May, retail sales dropped by a seasonally adjusted 0.5 per cent, the largest fall in 13 months. The greatest decline was in discretionary spending, with sales in department stores falling by 2.6 per cent. Australian National Retailers Association CEO Margy Osmond said that uncertainty about many Budget measures was weakening consumer confidence

CORPORATES
AUSTRALIAN NATIONAL RETAILERS ASSOCIATION LIMITED, AUSTRALIAN RETAILERS ASSOCIATION, AUSTRALIAN BUREAU OF STATISTICS, PACIFIC BRANDS LIMITED – ASX PBG, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, METCASH LIMITED – ASX MTS, THE REJECT SHOP LIMITED – ASX TRS, DEUTSCHE BANK AG, RESERVE BANK OF AUSTRALIA

ASIC not done yet in DJs battle

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17/22 : 4-Jul-14

The Australian Securities & Investments Commission (ASIC) will carefully monitor the $A2.2 billion takeover bid for David Jones by South African retailer Woolworths. The regulator is concerned that major shareholder Solomon Lew will gain a collateral benefit from Woolworths’ accompanying offer for Country Road. ASIC failed to gain a court order for an independent valuation of the benefit. However, it has other options to force disclosure of information to David Jones shareholders

CORPORATES
DAVID JONES LIMITED – ASX DJS, COUNTRY ROAD LIMITED – ASX CTY, WOOLWORTHS HOLDINGS LIMITED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, LONERGAN EDWARDS AND ASSOCIATES LIMITED

ASIC steps into $2b DJs takeover

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Original article by Sue Mitchell
The Australian Financial Review – Page: 1-Dec : 3-Jul-14

The Australian Securities & Investments Commission has acted in the $A2.2 billion takeover of David Jones by South African retailer Woolworths. The regulator is concerned that Solomon Lew will receive a collateral benefit from Woolworths’ offer for the remaining shares in Country Road. It believes that full ownership of the two businesses will increase synergies and may affect the value of the offer. It wants David Jones and Woolworths to provide more information before the shareholders’ meeting on 14 July 2014. However, a court ruled that David Jones does not need to provide an independent valuation of the collateral benefits

CORPORATES
DAVID JONES LIMITED – ASX DJS, COUNTRY ROAD LIMITED – ASX CTY, WOOLWORTHS HOLDINGS LIMITED, GRANT SAMUEL AND ASSOCIATES PTY LTD, FEDERAL COURT OF AUSTRALIA, LONERGAN EDWARDS AND ASSOCIATES LIMITED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Wesfarmers slashes $680m off Target

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Original article by Blair Speedy
The Australian – Page: 19 : 3-Jul-14

Wesfarmers has reduced the value of its Target discount department stores chain by $A680 million. However, Wesfarmers CEO Richard Goyder is confident that the business can be improved. Its earnings fell by 53 per cent to $A70 million in the first half of 2013-14. A turnaround, led by Stuart Machin, will reduce the product range, refresh stores and sell excess stock

CORPORATES
WESFARMERS LIMITED – ASX WES, TARGET AUSTRALIA PTY LTD, COLES GROUP LIMITED, PACIFIC BRANDS LIMITED – ASX PBG, METCASH LIMITED – ASX MTS, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, THE REJECT SHOP LIMITED – ASX TRS, KMART AUSTRALIA LIMITED

Woolworths takes hard line with Lew over DJs bid

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15/20 : 1-Jul-14

Woolworths has declared that its offers for David Jones and Country Road are "best and final". The South African company announced on 30 June 2014 that its bids of $A4 a share for David Jones and $A17 a share for Country Road will not be increased. It is not known yet how prominent investor Solomon Lew will respond to the announcement. Lew has stakes of 11.8 per cent in Country Road and 9.9 per cent in David Jones

CORPORATES
DAVID JONES LIMITED – ASX DJS, COUNTRY ROAD LIMITED – ASX CTY, WOOLWORTHS HOLDINGS LIMITED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. TAKEOVERS PANEL, DEUTSCHE BANK AG, GILBERT AND TOBIN LAWYERS, NM ROTHSCHILD AND SONS (AUSTRALIA) LIMITED

$200m peace offer for Lew

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Original article by Sue Mitchell, Sarah Thompson
The Australian Financial Review – Page: 1-Oct : 25-Jun-14

Australian retailing identity Solomon Lew in 1997 acquired a blocking stake of 11.8% in Country Road. In 2014, he has duplicated the move by building a holding of 9.9% in David Jones (DJs). The takeover suitor in both cases is South Africa’s Woolworths, which has now been forced by Lew’s tactics to buy him out of Country Road and to offer $A17 a share. This is an increase of nearly 400% from the on-market price in early 2014. In exchange Woolworths will also be able to move to full ownership of DJs. Insiders say Woolworths had been keen to take control of Country Road in any case

CORPORATES
COUNTRY ROAD LIMITED – ASX CTY, DAVID JONES LIMITED – ASX DJS, WOOLWORTHS HOLDINGS LIMITED, PREMIER INVESTMENTS LIMITED – ASX PMV, NM ROTHSCHILD AND SONS (AUSTRALIA) LIMITED, GILBERT AND TOBIN LAWYERS, GREENHILL AND COMPANY, ARNOLD BLOCH LEIBLER, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. TAKEOVERS PANEL, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN RETAIL INVESTMENTS PTY LTD, MIMCO PTY LTD, WITCHERY FASHIONS PTY LTD, MYER HOLDINGS LIMITED – ASX MYR, TRENERY

Coles takes a bite of UK’s Tyrells Crisps

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Original article by Damon Kitney
The Australian – Page: 19/23 : 25-Jun-14

David Milner, CEO of UK premium snack foods company Tyrrells Crisps, has visited Australia to announce a new alliance with supermarkets chain Coles. The retailer will sell the product line in its 700 stores, and Milner says that if sales can be grown to Stg2m ($A3.6m) per annum a local processing plant may also be rolled out. Fresh potato production in Australia has declined 15% over the past 10 years while imports have risen from $A36m to $A132m. The domestic potato crisps market is dominated by Frito-Lay Australia and Snack Foods

CORPORATES
WESFARMERS LIMITED – ASX WES, COLES GROUP LIMITED, TYRRELLS POTATO CRISPS, INVESTCORP SA, GUCCI GROUP NV, TIFFANY AND COMPANY, HELLY HANSEN, HORTICULTURE AUSTRALIA LIMITED, PEPSICO AUSTRALIA PTY LTD, FRITO-LAY AUSTRALIA, THE SMITH’S SNACKFOOD COMPANY LIMITED, SNACK FOODS LIMITED, ARNOTT’S BISCUITS LIMITED, CAMPBELL SOUP COMPANY, PROCTER AND GAMBLE COMPANY, MARS INCORPORATED, THE KETTLE COOKED CHIP COMPANY PTY LTD, TESCO PLC

Myer sacks exec over false employment claims

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Original article by Michael Bennet
The Australian – Page: 21 : 25-Jun-14

Australian department stores chain Myer in mid-June 2014 appointed Andrew Flanagan its new strategy and business development GM. It pointed out at the time that he had a wide-ranging background in the retailing sector, including a role at the Inditex Group of Spain that owns clothing stores business Zara. However the latter then said it had never employed Flanagan, and Myer on 24 June announced Flanagan’s dismissal. Court action is also possible over the deception

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, ZARA, INDITEX SA, TESCO PLC, WAL-MART STORES INCORPORATED, QUEST PERSONNEL, DEUTSCHE BANK AG, PREMIER INVESTMENTS LIMITED – ASX PMV, SPECIALTY FASHION GROUP LIMITED – ASX SFH

Vote on hold as Lew lifts DJs stake

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Original article by Blair Speedy
The Australian – Page: 21 : 20-Jun-14

Australian-listed department stores chain David Jones (DJs) has informed the market that it has asked the Federal Court to delay the stockholder vote on the friendly takeover bid by Woolworths. The deal worth $A2.15bn with the South African suitor has been placed into jeopardy by revelations that retailing sector identity Solomon Lew now holds 9.89% of the target. There are fears his goal is to build a blocking stake, to force Woolworths into buying him out of Country Road. He owns 11.8% of that business and Woolworths close to 88%. The DJs investor ballot will now be held on 14 July 2014 rather than 30 June

CORPORATES
DAVID JONES LIMITED – ASX DJS, COUNTRY ROAD LIMITED – ASX CTY, WOOLWORTHS HOLDINGS LIMITED, FEDERAL COURT OF AUSTRALIA, ASX LIMITED – ASX ASX, OWNERSHIP MATTERS PTY LTD, KING AND WOOD MALLESONS

Lew ups stake in DJs to 9.9pc

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Original article by Sue Mitchell
The Australian Financial Review – Page: 19/24 : 6/19/2014

The takeover worth $A2.2bn of Australian department stores chain David Jones (DJs) by South Africa’s Woolworths will need to be approved by DJs shareholders in a vote on 30 June 2014. However, a complication may have arisen under collateral benefits law, as retailing sector stalwart Solomon Lew has disclosed he now holds 9.9% of the target. While his motives are not clear, there is speculation he wants to push Woolworths into buying his 11.8% blocking stake in Country Road. Such a side deal would attract scrutiny by the Australian Securities & Investments Commission and the Takeovers Panel

CORPORATES
DAVID JONES LIMITED – ASX DJS, COUNTRY ROAD LIMITED – ASX CTY, WOOLWORTHS HOLDINGS LIMITED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. TAKEOVERS PANEL, AUSTRALIAN RETAIL INVESTMENTS PTY LTD, CORRS CHAMBERS WESTGARTH, GOLDMAN SACHS AUSTRALIA PTY LTD, BLACKROCK INCORPORATED, DEUTSCHE BANK AG, ALLAN GRAY AUSTRALIA PTY LTD, AUSBIL DEXIA LIMITED, PERPETUAL INVESTMENTS, PERPETUAL LIMITED – ASX PPT, PENGANA CAPITAL LIMITED, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT