By Geoff Senescall
Farmers Deka is refusing to comment on whether it is the mystery bidder eyeing appliance retailer Pacific Retail Group.
Speculation centred on the wholly owned subsidiary of listed Perth-based retailer Foodland yesterday after several of the possible contenders - including Australian appliance retailer Email and retailer Harvey Norman -
ruled themselves out.
Speaking from Perth, Foodland managing director Barry Alty simply said "no comment" when asked about the rumours.
News of another bidder emerged last Friday when lawyers Russell McVeagh told Pacific Retail directors that an offer might be forthcoming at a "significantly higher price" than the one on the table.
The mystery bidder, which must seek approval from its board, expects to confirm its plans by next Tuesday - one week before the $58.5 million takeover offer by Blue Star boss Eric Watson closes.
Pacific Retail directors reacted by telling shareholders to hang on to their shares to see whether the new bid materialised.
This reversed a decision the day before to recommend Mr Watson's 130c-a-share offer based on a report by Pacific Retail's financial advisers, which suggested another offer was unlikely.
If the mystery bidder is Farmers, it potentially raises serious issues for New Zealand whiteware manufacturer Fisher & Paykel.
Under Fisher & Paykel's "exclusive dealing agreement," retailers who sell its whiteware cannot sell competing brands.
At the moment Farmers is a distributor of Fisher & Paykel whiteware. However, both Noel Leeming and Bond & Bond, whose 90 stores make up Pacific Retail, sell foreign brands.
Noel Leeming had been a Fisher & Paykel distributor, but it was forced out of the franchise when it merged with Bond & Bond in 1996 to form this country's largest appliance retailer.
Meanwhile, if the new bid emerges, it will be too late for three of Pacific Retail's major shareholders - former chairman Sir Roger Bhatnagar, former managing director Greg Lancaster and Murray International, who between them hold around 70 per cent of the shares.
The three have unconditionally signed their holdings away to Mr Watson.
