Wednesday June 10, 08:49 AM
German retailer Metro eyes Arcandor: report
FRANKFURT (AFP) - The leading German retailer, Metro (Xetra: 725750 - news) , wants to add distressed rival Arcandor (Xetra: 627500 - news) to its basket and possibly list a new group on the stock exchange, Metro boss Eckhard Cordes said.
"We have a short- and medium-term objective to create a large new ensemble and I even think ... it might be possible to list such a company on the market," Cordes told ZDF television.
Arcandor filed for insolvency on Tuesday after failing to obtain state aid under a programme for companies hit by the global economic downturn because it is accused of bad management before the crisis erupted.
Around 43,000 jobs are at risk, though they do not include staff at the travel group Thomas Cook, in which Arcandor holds a majority stake.
In the event of a merger, Metro would regroup its Kaufhof chain with rival Karstadt, owned by Arcandor, and retain around 160 of the combined 200 department stores, Cordes said.
Following a two-year restructuring, Metro would like to sell most of the combined operation, a spokesman was quoted by the business daily Handelsblatt as saying.
If that does not take place via a public listing of shares, Metro might look for a private investor.
Handelsblatt said Italian retailer Maurizio Borletti, backed by a financial group, could be interested.
"We are currently participating in discussions," Borletti told the newspaper, without providing details.
He owns the Italian chain Rinascente and also holds a minority stake in the French retailer Printemps.
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