Coles bidding on hold for 6 weeks

Coles bidders could be forbidden from putting firm offers to the takeover target for at least six weeks amid concerns that the retailer's decision to grant a private equity consortium exclusive access to financial records has undermined the auction process.

Dismayed at being beaten into the Coles data room by US buyout firm Kohlberg Kravis Roberts, rival bidder Wesfarmers has sought assurances from the retail group that the sale will remain competitive.

Coles was last believed to be close to signing an agreement to stave off any pre-emptive offers for the business until all bidders have been given ample time to conduct due diligence. Prospective buyers will most likely be banned from making such bids, including so-called knockout offers, for at least six weeks. This follows a weekend of tense discussions between Coles and Wesfarmers, which has yet to begin due diligence.

(Source: Sydney Morning Herald)