Walmart May Scale Back Bid, Keep Massmart Listed
October 28, 2010 | 1 min to read
(Reuters) – Wal-Mart (WMT.N), the world's biggest retailer, may scale back its $4 billion bid for Massmart (MSMJ.J) by nearly half, a move that could keep the South African firm listed in Johannesburg.
Wal-Mart is now considering taking more than a 50 percent stake, rather than a full buyout, Massmart said in a statement on Thursday. The offer price was still 148 rand per share, Massmart said.
Shares of Massmart were down 0.3 percent at 141.09 rand as of 1409 GMT, having fallen nearly 3 percent in early trade. Johannesburg's blue-chip Top-40 index .JTOPI was up 1.2 percent.
Wal-Mart has been under increasing fire from its shareholders to revive its ailing U.S. stores, and some analysts have said it should concentrate on fixing its business at home before spending big on expansion.
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