South African firm will bid for Myer

South African fashion retailer Edgars Consolidated Stores (Edcon) will submit an offer for Australia's Myer chain and said yesterday investors should exercise caution in dealing with its shares.

"Following extensive investigation ... Edcon will be submitting an offer for Myer which, if accepted, may have a material effect on the price of Edcon's securities," the company said.

Edcon said in August last year that it was eyeing the struggling Myer department stores owned by Australia's biggest retailer, Coles Myer.

Coles Myer is considering selling the 60-store chain, which posted a loss in 2002 and has continued to underperform the rest of the company.

Potential bidders were invited to place indicative offers by a deadline in early December 2005.

Analysts have estimated the department store chain, which accounts for about 8 per cent of Coles' A$37 billion annual sales, could fetch A$500 million ($560 million), excluding property proceeds.

Retail trade buyers expected to have lodged indicative bids included Edcon and Dubai-based retailer Landmark Group.

- REUTERS