Pressure on Woolworths over synergies
South African retailer Woolworths could miss ambitious synergy targets pledged to its investors from the planned takeover of David Jones after shelling out an extra $213 million to dislodge rag-trade billionaire Solomon Lew from his Country Road foxhole.
For Woolworths, the addition of Country Road implies that the "real" premium it is paying for the David Jones acquisition goes up to 38 per cent – or 25 per cent excluding the acquisition of Mr Lew’s stake in Country Road.
Investors said this could place further pressure on Woolworths management to hit their targets of squeezing $130 million a year of earnings from David Jones within five years. Sydney Morning Herald – Read more…