"Aussie Grocer's Gamble After Spurning Offer By Susan Murdoch Word Count: 819 Emerging Markets
A CONSORTIUM LED BY U.S. private-equity giant Kohlberg Kravis Roberts was hastily shown the door in October by Australia's second-largest retailer, Coles Group. But since then, a string of bad news for the supermarket operator has some betting that buyout groups may pounce again.
Private-equity firms have a natural attraction to retailers like Coles (ticker: CGJ.Australia). Solid and reliable cash flows enable the rapid paydown of debt, and a well-known brand ensures maximum recognition when the business is returned to the stock exchange.
Australia's supermarket sector is a near-duopoly, with Coles holding around 35% of the market and ...
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