Shares in takeover target The Warehouse have spiked as market anticipation grows that rival suitors Foodstuffs and Woolworths may make pre-emptive strikes on the stock.
When Justice Jillian Mallon granted the Commerce Commission leave to appeal an earlier ruling - which had been in favour of the buyers- she also imposed a moratorium on either potential bidder buying shares before the end of February.
The Commerce Commission opposes the sale of The Warehouse, arguing it will reduce the potential for future competition in the grocery sector.
A court date for the appeal has been set down for April 29.
But market sources say some institutions are betting that either Foodstuffs or Woolworths will make a pre-emptive strike in a bid to shut out the other before a final court ruling.
That has prompted renewed buying interest in the past week.
Shares in the nation's largest listed retailer rose 14c yesterday to $6.14 and are now up 42c since February 15.
While the preferred option was still to wait until the court process was complete and the sale process was approved, neither party could afford to let the other get a head start, one source said yesterday.
That might prompt an early bid - conditional on the court decision - or alternatively on-market buying as both parties looked to build stakes to block a full takeover by the other.
Woolworths and Foodstuffs both own 10 per cent stakes in the company.
Warehouse founder Stephen Tindall and the Tindall Foundation hold a controlling stake of about 50 per cent.
While Tindall is still expected to have the biggest influence on the outcome, if one of the parties were to get to 20 per cent before launching a full takeover it could provide a considerable advantage.
