By Paul McBeth
Thursday 9th October 2008 |
Text too small? |
The company’s three existing Extra stores haven’t met economic targets, chairman Keith Smith said in a statement today. Exit and restructuring costs of as much as NZ$12 million will be taken against Warehouse’s 2009 earnings.
Shares of the Warehouse jumped more than 13% to NZ$3.50 after the announcement, on speculation it will improve the prospects of a takeover from Woolworths.
Australia’s biggest retailer last month sought leave from the Supreme Court to challenge a Court of Appeal decision that prevented it bidding for Warehouse.
“The price reflects that the Warehouse is back in play,” said Stephen Wright, an adviser at ASB Securities.
The Commerce Commission opposed the takeover bid by both Woolworths and rival Foodstuffs on the grounds that the Extra stores increased competition in the supermarket industry.
No comments yet
EBOS announces appointment of new Chief Financial Officer
AM Best affirms Tower Limited's A- (Excellent) FSR
MCK enters into conditional agreement for Whangarei land
April 26th Morning Report
SPG - Change to Executive Team
BGI - Forgiveness of $200,000 of secured indebtedness
General Capital Subsidiary General Finance Market Update
AFT,Massey Ventures,Gilles McIndoe to develop scar treatmen
April 24th Morning Report
Cheers to many fewer grape harvest spills