Statement re. Press Comment

    RNS Number : 4905B
  Woolworths Group PLC
  17 August 2008
   

    Woolworths Group plc
    Announcement
    17 August 2008

    
The Board of Woolworths Group plc ("Woolworths" or "the Company") notes the recent reports in the press concerning a proposal by Iceland to
acquire the retail division of the Company.

The Board confirms that it did receive an indicative proposal and that it has been rejected on the grounds that:

- it involved a complex restructuring which in practical terms is not achievable
- it undervalued the assets of the Company and potentially would have adversely impacted the Group's existing funding arrangements, after
meeting any resultant obligations to the Pension Fund and
- it required the Company to retain all the pension liabilities for current and former employees of the retail business.  This is
unacceptable to the Board.

As announced on 29 July 2008 with the pre-close trading statement, the Board has recently undertaken a review of the Group's businesses. 
The preliminary conclusions, confirmed by a study carried out by LEK, a leading firm of strategy consultants, confirms the Board's belief
that there is a considerable opportunity for the Group to build a sustainable value retail proposition based primarily on its small to
medium sized stores.  The review has also highlighted opportunities for improved stock management in the areas of ordering, weeks of stock
cover held and availability.  The Board also announced on 12 August 2008 the appointment of a strong new Chief Executive, Steve Johnson,
with proven operational and strategic skills, to lead the implementation of the turnaround strategy for the retail division and the recovery
and growth of the Woolworths Group as a whole.

Further details on the issues and opportunities highlighted by the recent review will be included with the Group's interim results on 17
September 2008.
    
 
    Further information
 Andrew Grant, Tulchan Communication  020 7353 4200
 Lucy Legh, Tulchan Communications    020 7353 4200


This information is provided by RNS
The company news service from the London Stock Exchange
 
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