WOOLWORTHS Australia may buy back shares
WOOLWORTHS Australia may buy back shares
The chief executive of Woolworths in Australia, Michael Luscombe, speaking on television over the weekend, has said that the retailer may offer a massive share buyback next year if the group’s acquisition aspirations fail to materialise. Mr Luscombe said the group had a flexible balance sheet and access to funds at short notice that enabled it to take opportunities as they arise in the market place. "We obviously have the ability to do some capital management and should nothing transpire in the acquisition stakes over the next 12 months or so, early in calendar year 2008 we have the opportunity to return to our shareholders.” He said a team led by chief financial officer Tom Pockett keeps a close tab on potential offshore acquisitions. "We're not going to place Woolworths at risk by overextending in a particular area," Mr Luscombe said. "Our foray into New Zealand is probably the first big learning experience in managing a business in another economy, although it's very close to our own economy here."