Dick Smith float a commercial riddle that doesn’t compute

The float of Dick Smith in early December doesn’t stack up – or at least the $520 million price tag doesn’t. It just doesn’t sound credible to make a three-plus bagger return on an investment held for only a year. On Tuesday morning the Woolworths boss Grant O’Brien, who sold the consumer electronics business to private equity group Anchorage for $94 million, will be asked by his shareholders to explain that commercial riddle.
He either has to try for a mea culpa suggesting Woolworths potentially left more than $400 million on the table because it was incapable of running a consumer electronics chain or had taken its eye off the ball – or a combination of the above.  Sydney Morning Herlad – Read more…