what will happen on opening, page-25

re: management will go Sounds like it may not be the end of the story.

DJ AUSTRALIA PRESS: Coles Holders Considering Legal Action 20/10/2006 08:04AM AEST

MELBOURNE (Dow Jones)--Institutional investors are considering legal action against the directors of Coles Ltd. (CML.AU) after the board rejected an increased takeover offer of A$18.2 billion without consulting shareholders, the Australian reports Friday.

A number of major Coles shareholders are understood to be assessing their options to launch proceedings against the board over alleged breaches of fiduciary duties to act in the best interest of shareholders, the paper says, without citing sources.

Coles shares plunged 9% Thursday after the company rejected an increased takeover offer from a consortium of private equity investors led by New York-based Kohlberg Kravis Roberts & Co. (KKR.XX).