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Shares in Woolworths become hot property

Shares in Woolworths rose sharply today (18/8) as investors awaited Iceland founder Malcolm Walker’s next move in his pursuit of the group’s retail arm.

Woolies yesterday rejected as "unacceptable" an approach for its 815 storesfrom a group headed up by Mr Walker and backed by Icelandic investment groupBaugur, which has a 10% stake in Woolies.
 

Mr Walker’s offer was reportedly worth "tens of millions of pounds" andstipulated that Woolworths kept hold of its entertainment distribution andpublishing arms, as well as multi-million pension fund deficit and debts.
 

The retailer, which has just appointed former Focus DIY boss Steve Johnson aschief executive to lead a turnaround, dismissed the approach, saying itundervalued the business and involved a complex restructuring.
 

Analysts have welcomed the idea of a retailing split for the group, and shareswere up more than 15% at one point today.


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