The Bookseller.com

4th July 2009

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Woolies £1 retail sale "ridiculous"

20.11.08

Woolworths' biggest shareholder has branded the firm’s plans to sell its retail arm for £1 as “ridiculous”, according to a report in the FT today.

Iranian developer Ardeshir Naghshineh, who owns 10.2% of Woolworths, was heavily critical of the plan saying the division was worth much more.

He said: "We know that it's worth hundreds of millions of pounds. I know stores at the moment where landlords are prepared to give millions of pounds in premiums to get Woolworths out."

Naghshineh wanted the new chief executive, Steve Johnson, to be given more time to turn the stores around.

He said an alternative deal could be found and urged Woolworths to discontinue talks with Hilco. Naghshineh would not say whether he would be part of any rival bid.

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