Australia's Coles Group Ltd warned its shareholders not sell their interests in the company ahead of the completion of the board's ownership review.
This indicates the company is leaving the door open for possible rival bids.
In a statement today, the nation's second largest retailer said it hadnot indicated that the A$16.47 cash per share offer contained in the Wesfarmers-led group's indicative proposal would be one that the Coles Board would be prepared to recommend to its shareholders.
"Until such time as Coles' ownership review has been completed and the Coles Board has made a recommendation to shareholders, Coles shareholders are advised not to sell, or grant economic or voting interests over, their shares," the company said in a statement.
Yesterday, Coles shareholder Hedley Group, pledged to support the A$20 billion offer.
Its 1.5 per cent stake in Coles would take Wesfarmers' interest up to 12.80 per cent.
However, Coles said today the group was committed to running a "fully competitive process in evaluating ownership alternatives in order to maximise shareholder value for Coles shareholders".
Although Wesfarmers Ltd has continued talks with Coles Group Ltd over the Easter weekend and is hoping to go through the potential target's books this week, Coles said the consortium has has not yet been granted access to any non-public material from the Coles.
The Coles Group said that a number of interested parties would likely be granted access to the data room to begin due diligence shortly.
There is still some speculation in the market as to whether another bidder will emerge, or whether Coles' initial suitor US outfit Kohlberg Kravis Roberts, which made a failed A$18.2 billion offer last year, will try to trump the bid.
Coles said that the current interest in voting power in Coles Group securities held by the Wesfarmers-led group was not one that could prevent or deter any alternative ownership proposal for the company.
