SYDNEY (AFX) - The UK's second largest department store group, Debenhams Plc, has joined the list of companies involved in bidding for Coles Myer Ltd's Myer department stores, The Australian Financial Review reported without citing sources.
It said Debenhams directors have been in Australia to help a consortium including private equity firm Texas Pacific with a bid for the stores which are expected to sell for at least 800 mln aud.
Debedhams was acquired three years ago by Texas Pacific and another private equity firm CVC Capital which is also bidding for the Myer stores through its Asia-Pacific arm.
The newspaper said Debedhams may take a small stake in the Texas Pacific consortium.
Meanwhile, The Age newspaper reported South African retail group Edgars Consolidated Ltd has confirmed it will lodge a bid for Myer today.
It said market watchers consider the company the favourite to land the historic department store business because the savings and synergies that can be generated from meshing the two businesses will allow it to pay a higher price than other bidders.
The Age said the expectation that Edgars, which has more than 700 stores in southern Africa, will outbid its competitors is based on the belief that its operation is similar to Myer's in terms of seasonal product ranges.
It said the retailer should also be able to generate synergies from improved purchasing leverage and better sourcing opportunities on the global markets.
(1 usd = 1.34 aud)
bruce.hextall@xfn.com
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