Metcash holds off on cash return

Food and liquor wholesaler Metcash said it would hold off on returning cash to shareholders following its A$1.1 billion ($1.23 billion) purchase of Foodland's Australian business, sending its shares down 4 per cent.

Metcash also said the acquisition was on track to deliver earnings growth in line with forecasts.

The capital return, which had been expected after Foodland shareholders mainly accepted stock as payment, would not take place until at least mid-2006.