Coles deal not done

Texas Pacific Group (TPG), the private equity company behind Myer, has not completely abandoned its ambitions to take part in the bid for Coles Group. Australia's biggest takeover — the A$19 billion (€11.9 bn). TPG was in the running to bid for Coles but was forced to withdraw because of a collapse in US lending markets.

TPG is prevented from approaching Wesfarmers to discuss such a deal, but it has pinned its hopes on the Coles board lifting the ban, which was put in place after the auction process was completed. It hopes to resurrect its ambitions by partnering former bidding rival Wesfarmers, which this week will review its takeover offer. Wesfarmers' sagging share price is threatening the offer.

Wesfarmers stock has fallen more than 15% since the proposal was announced. Coles and Wesfarmers advisers will meet to discuss how to make the offer more palatable to shareholders. As the offer stands, the Coles board is unlikely to recommend it to shareholders.