WOOLIES’ DAVID JONES AC­QUI­SI­TION SERV­ING IT WELL

Finweek English Edition - - SIMON SAYS -

As a share­holder in Wool­worths* the David Jones deal looked great to me, but I was con­cerned as these large deals al­ways take longer to bed down than man­age­ment sug­gests. While Woolies was say­ing it would take three years, I was wor­ried that it may take longer. I gave the re­tailer the ben­e­fit of the doubt by tak­ing up my rights when it is­sued shares to find the trans­ac­tion, but haven’t been buy­ing more. Yet man­age­ment re­turned great re­sults from both the lo­cal op­er­a­tion and from David Jones, in­di­cat­ing that it re­ally is se­ri­ous about mak­ing this work smoothly. The shares re­main ex­pen­sive, but if they come down to my en­try level, I will be a buyer, hav­ing re­moved my non-buy­ing sta­tus on con­cerns of the deal. mak­ing con­tracts. Time will tell if the smaller or­der books are health­ier, but re­gard­less, I con­tinue to stay away from the sec­tor as it re­mains tough no mat­ter what space or ge­og­ra­phy the com­pa­nies op­er­ate in.

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