CML will be privatised if bought out by a private equity consortium. And as Gottliebsen said yesterday, that is the only way Coles can bridge the gap with Woolworths. Whilst CML is listed and is under pressure to deliver profits, it will not be able to take the necessary risks (ie invest) to leapfrog WOW. As things stand Woolworths have an insurmountable advantage. WOW's Project Refresh have reduced their costs my $9 billion. Most of it has been ploughed back into lower shelf prices. This means that WOW can make more money than CML with lower prices. Therefore, CML has to take a longer term view, in private hands, and suffer some early pain (perhaps losses) to bridge the gap.
CML Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
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