Edgars to make offer for Myer

JOHANNESBURG – South African fashion retailer Edgars Consolidated Stores (Edcon) will submit an offer for Australia’s Myer chain and said yesterday investors should exercise caution in dealing with its shares.

“Following extensive investigation … Edcon will be submitting an offer for Myer which, if accepted, may have a material effect on the price of Edcon’s securities,” the company said in a statement.Edcon said in August last year that it was eyeing the struggling Myer department stores owned by Australia’s biggest retailer, Coles Myer.Coles Myer is considering selling the 60-store chain, which posted a loss in 2002 and has continued to underperform the rest of the company.Potential bidders were invited to place indicative offers by a deadline in early December, 2005.Analysts have estimated the department store chain, which accounts for about 8 percent of Coles’ A$37 billion annual sales, could fetch A$500 million (US$372 million), excluding property proceeds.Retail trade buyers expected to have lodged indicative bids included Edcon and Dubai-based retailer Landmark Group.-Nampa-ReutersEdcon will be submitting an offer for Myer which, if accepted, may have a material effect on the price of Edcon’s securities,” the company said in a statement.Edcon said in August last year that it was eyeing the struggling Myer department stores owned by Australia’s biggest retailer, Coles Myer.Coles Myer is considering selling the 60-store chain, which posted a loss in 2002 and has continued to underperform the rest of the company.Potential bidders were invited to place indicative offers by a deadline in early December, 2005.Analysts have estimated the department store chain, which accounts for about 8 percent of Coles’ A$37 billion annual sales, could fetch A$500 million (US$372 million), excluding property proceeds.Retail trade buyers expected to have lodged indicative bids included Edcon and Dubai-based retailer Landmark Group.-Nampa-Reuters