News: API Retail giant Wesfarmers seeks to thwart Woolworth's rival approach for API

Dec 15 (Reuters) - Retail conglomerate Wesfarmers (WES) said on Wednesday it would not support a buyout bid from grocer Woolworths (WOW) for Australian Pharmaceutical Industries (API) and that its offer for the drugstore chain was in investors' best interests.

Wesfarmers, API's biggest shareholder with a 19.3% stake, had last month agreed a A$1.55 per share offer for the shares it did not already own in the country's biggest drugstore chain.

But Woolworths gatecrashed the deal with a higher bid of A$1.75 per share, setting the scene for a bidding war between Australia's two largest retail companies.

"We've continued to develop our plans for the API business. We have met with and listened to representatives from across the sector and we're confident our proposal supports community pharmacists and their businesses, for the long-term," Wesfarmers said in a statement.

The conglomerate, owner of Australian Kmart, Target and Officeworks, holds nearly enough to block a rival takeover since an acquisition needs approval from owners of 75% of the pharmacy chain's shares.

Woolworths Group and API were not immediately available for comment. ($1 = 1.4088 Australian dollars)