Coles Myer update

We mentioned a few weeks ago that Coles Myer, Australia's #2 retailer, was being pursued for a buyout. As an update, the board yesterday rejected a $13b bid -- although that may be an effort to get the pot sweetened:

Coles Myer said the bid, pitched at an indicative price of A$14.50 a share, was opportunistic and highly conditional, subject to unspecified due diligence, and offered no certainty on proposed financing.

However, analysts said the consortium, a group of top private equity players led by U.S.-based Kohlberg Kravis Roberts, could return with a higher bid, given the potential to add value to Coles Myer's food and liquor stores across Australia. The bid was pitched at a 5.8 percent premium to Coles latest share market close at A$13.71.