Print

Mail

wiki links

World business quick take

■Retailers
Tesco may bid for Ahold
Tesco Plc, the UK's largest retailer, is considering a UK Pound 10 billion (US$15.7 billion) bid for the assets of Royal Ahold NV, a Dutch grocer whose shares tumbled 64 percent last week, the Independent reported yesterday, without citing anyone. Ahold, the world's biggest food distributor, said last week that it overstated profit for the past two years by more than US$500 million and ousted its chief executive and chief financial officer. Analysts expect Ahold will sell businesses to finance debt of more than 13 billion euros (US$14 billion), the paper said. Five Tesco executives, including Marketing Director Tim Mason and Financial Director Andrew Higginson, are examining Ahold and will report to Chief Executive Terry Leahy later this week, according to the paper.

■ Coffee chains
Starbucks to buy Appetit
Starbucks Coffee Co, the biggest US coffee-shop chain, will buy its licensed operations in Switzerland and Austria from international partner Bon Appetit Group AG. Terms weren't disclosed. The cash purchase is expected to close by the end of April. It includes 14 stores in Switzerland and seven stores in Austria, Starbucks said in a statement. The purchase is part of the company's expansion plans, Starbucks said. Starbucks said the acquisition won't affect fiscal 2003 earnings, and it still expects to earn US$0.67 a share to US$0.68 a share. In January, Starbucks said fiscal first-quarter earnings rose 17 percent to US$80 million, or US$0.20 a share, on sales of US$1 billion. Prepaid Starbucks gift cards and peppermint holiday-coffee drinks bolstered sales in the period.

■ Gas Stations
Woolworths wants pumps
Woolworths Ltd, Australia's biggest supermarket chain, is considering adding to its 280 gas stations with acquisitions, Chief Executive Roger Corbett said. "There are several major petrol companies that are interested in doing something with their retail assets," Corbett said in an interview with Nine Network's Business Sunday program. "We're giving it some consideration," he added, without naming the companies or giving other details. Sydney-based Woolworths is using its gas stations to bring people into its stores, offering shoppers who spend A$30 or more at its supermarkets a discount of US$0.04 a liter off the price of gasoline. Rival Coles Myer Ltd cited the campaign as a key factor in its sales slowdown and said providing a petrol offer of its own was a priority.

■ Merger
Lehman to cut investment
Lehman Brothers Holdings Inc may reduce its planned investment by as much as 80 percent to Japanese Yen 10 billion (US$85 million) in a merger of Japanese trading companies Nissho Iwai Corp and Nichimen Corp, the Nihon Keizai said. Lehman will probably cut its planned stake because it's unclear how much money may be lost in the two companies' reorganization, the Nikkei reported, citing unnamed sources familiar with the matter. Jackie Kestenbaum, a Lehman spokeswoman, declined to comment on the report. In January, Nissho Iwai and Nichimen said they agreed to terms for an April merger to form the nation's sixth-biggest trading company. At the time, Nissho Iwai said Lehman planned to buy Japanese Yen 10 billion in preferred shares and Japanese Yen 50 billion in convertible bonds of the companies.

Agencies
This story has been viewed 5320 times.