Rumours that Walmart has put Australia's second largest retail company, Coles Myer, on its shopping list is an "extremely worrying development for retail workers, local store owners and supermarket and department store suppliers", says the National Distribution.

The National Didstribution Union has a collective agreement covering the Coles-owned K Mart chain, believed by some to be available for sale to Walmart.

National Secretary of the National Distribution Union Laila Harré was commenting on speculation in the DOW JONES NEWSWIRES September 14, 2006 12:18 a.m.(UST) reproduced below.

Laila Harré says that the current lock out of distribution centre workers employed by Woolworths Australia's New Zealand arm, Progressive, is "just a taste of things to come if Walmart become more directly involved in Australasia. Woolworths and Walmart have a management exchange programme and the Sydney Morning Herald reported last month that Walmart has a stake in Woolworths already. Walmart is the world's biggest retailer and has fought to stop its employees organising in unions at every turn - going as far to close a store when staff joined the union."

"No wonder Stephen Tindall wants the Warehouse off the stock exchange and back in safe hands. Walmart could eat the Warehouse for breakfast at its current share value."

ENDS

Contacts

Laila Harré 021 839 661 (National Secretary)
Simon Oosterman 021 922 551 (Media Liaison)

Story from Dow Jones follows:

"Wal-Mart directors were in Melbourne along with advisers from McKinsey and in the advanced stages of a bid, which could lead to Coles Myer being carved up."
Australia's Coles: No Comment On Wal-Mart Speculation

SYDNEY (Dow Jones)--Australian retailer Coles Myer Ltd. (CML.AU) Thursday declined to comment on a report that U.S. retail giant Wal-Mart Stores Inc. (WMT) was considering a bid for the company.

"We don't comment on speculation," a spokesman for the Melbourne-based company said.

The Crikey corporate gossip newsletter earlier Thursday quoted unnamed sources saying Wal-Mart directors were in Melbourne along with advisers from McKinsey and in the advanced stages of a bid, which could lead to Coles Myer being carved up.

The report said the proposal would lead to Wal-Mart buying the Coles grocery business, Kmart, Vintage Cellars and Liquorland, while Melbourne businessman Solomon Lew would buy Target. The Officeworks office supplies and furniture business would be sold to the highest bidder, the report said.
Wal-Mart wasn't immediately available to comment.

Last week, Coles Myer's board rejected a A$17 billion offer by a consortium of private equity players led by Kohlberg Kravis Roberts & Co. (KKR.XX).
Coles Myer said KKR's A$14.50-a-share offer undervalued the company.

At 0415 GMT, Coles Myer shares were up 15 cents at a record A$14.55.