LONDON (Thomson Financial) - Struggling retailer Woolworths Group PLC will reduce its final dividend when it reports full year results later this week as the group's interest payments soar, the Sunday Telegraph reported.
The paper said the company could cut its dividend by as much as 50 pct, adding that onerous interest charges have risen to as much as 30 mln stg a year following its refinancing earlier this year.
This is also putting pressure on the company to explore the sale of its stake in 2entertain, a publishing joint venture with the BBC.
Analysts have previously valued Woolworths' stake in the company at up to 200 mln stg, more than the current market capitalisation of the whole company, the Sunday Telegraph added. kathy.sandler@thomson.com ks/jlw COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.