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.
n
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.
n
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…
n