What The Papers Say: A damp reception for proposed Asda merger

Unambiguous assertions from Kingfisher’s chief executive Sir Geoff Mulcahy of the benefits of the proposed Kingfisher merger with Asda apparently left City analysts ’uninspired’ (Express, 20/4).

Unambiguous assertions from Kingfisher’s chief executive Sir Geoff

Mulcahy of the benefits of the proposed Kingfisher merger with Asda

apparently left City analysts ’uninspired’ (Express, 20/4).



The focus of the criticism was that the ’marriage was out of balance’

(Daily Telegraph, 18/4), and the talk of a takeover was on meagre terms

rather than a merger of giants. Hopes for last-minute rival bidders in

the form of US monolith WalMart or France’s Carrefour were mercilessly

promoted by journalists and analysts.



Quiet murmuring from unidentified Asda shareholders that the terms of

the deal were ’not unduly generous’ were overwhelmed by claims that

there was a ’genuine synergy’ between the companies (Sunday Telegraph,

18/4).



Share prospects for employees and potential for growth were highlighted

as Asda’s primary gains, while the tabloids touted cost-savings for

customers.



But the proposal struck fear into the hearts of other retailers, already

feeling pressure to increase size through mergers.



Evaluation and analysis by CARMA International. Cuttings supplied by the

Broadcast Monitoring Company. ’What The Papers Say’ can be found at:

www.carma.com.



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