Sydney - Thursday - October 19: (RWE Aust Business News) - Coles Myer (ASX:CML) has rejected a revised proposal from the KKR-led leveraged buyout consortium at $15.25 a share. Chairman Rick Allert said the proposal, received after the stockmarket closed yesterday, was still substantially undervaluing the company and its prospects. He said the proposal remained non-binding and conditional upon, amongst other things, due diligence. "The conditionality of the proposal gives no certainty that the price proposed would be delivered to shareholders," he said. "The board believes that shareholder interests will be better served by the company pursuing its growth strategy." He said the consortium said it was the final proposal and it would not increase the indicative price. It will withdraw and publically announce its disengagement if it does not have the support of the CML board by 9am October 23 2006. The consortium has been reduced to five members: Kohlberg Kravis Roberts & Co, Carlyle Group, CVC Asia Pacific, Texas Pacific and Blackstone Group.
CML Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
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