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Woolworths Australia chief executive Michael Luscombe appears to be downplaying his interest in buying the Warehouse Group.
In an interview with Australia's ABC TV he said the company might offer a big share buyback if "big acquisitions" fell through.
"We're not going to place Woolworths at risk by over-extending in a particular area," he said.
New Zealand had provided a lesson for Woolworths, he said.
Woolworths Australia bought Progressive Enterprises in April 2005, giving it the Woolworths, Foodtown and Countdown chains with a combined share of 44 per cent of the supermarket sector.
Now Woolworths Australia and New Zealand grocery co-operative Foodstuffs both have applications with the Commerce Commission seeking clearance in advance to buy The Warehouse.
Woolworths bought 10 per cent of The Warehouse in November last year with an offer of $6.50 a share that valued the company around $2 billion.
Speaking to the ABC, Luscombe said the company was always looking at opportunities and could make acquisitions of "several" times that amount given its current level of debt.
Since Woolworths' $6.50-a-share purchase, The Warehouse share price has been buoyed by expectations of another bigger offer from Woolworths to woo Stephen Tindall. The shares closed at $6.90 yesterday, down 10c.
"Our foray into New Zealand is probably the biggest learning experience in managing a business in another economy although it is very close to our own economy here," Luscombe said.
The current Commerce Commission consideration has put a temporary halt to speculation about an imminent sale.
But Australian media have generally been confident that if Woolworths wants The Warehouse it would win any competition with Foodstuffs.
Luscombe has said in a previous interview with the Business Herald that experience in Australia could be useful in New Zealand acquisitions, and experience here valuable across the Tasman.
