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Today's announcement that confidence in the UK manufacturing industry is at a 30 year low is yet another knock for an industry which has been under pressure for over a decade. As the UK economy...
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Tuesday 19th August 2008
As we recently covered on this site the management of Woolworths recently turned down what in affect was a break up bid for the pick and mix kings of the high street. As the business continues to flounder, debts continue to grow and the pension fund deficit moves into dangerous territory just what can shareholders expect in the future?
Many experts in the City were a little surprised that the current management decided to reject the recent offer outright without even holding detailed negotiations to find some common ground. There were issues which seemed to be in the way of the potential breakup but many are suggesting that there should have been some more thought about finding an alternative option. While the company has affectively been in play for some time it seems unlikely that bidders will be knocking at the door considering the financial position of the overall group.
There are grave concerns that unless the business can be refinanced and reinvigorated then the financial position could worsen in the short to medium term. If the position was to worsen this would leave the group wide open to more opportunistic bids in the future and offer them very little defence from a half reasonable offer. |
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