(Bloomberg) -- Investors should buy credit-default
swaps linked to Coles Group Ltd., the Australian retailer that
yesterday accepted a A$19.6 billion ($16.8 billion) offer from
Wesfarmers Ltd., because buyout firms may ``re-enter the fray,''
National Australia Bank Ltd. said.
The contracts, used to bet on a company's ability to pay
debt, have slumped more than 60 percent since the takeover was
announced. Wesfarmers, Australia's biggest hardware chain, was
the only bidder for all of Coles after buyout firms led by
Kohlberg, Kravis Roberts & Co. and TPG Inc. dropped out of an
auction.
Read more at Bloomberg Bonds News
swaps linked to Coles Group Ltd., the Australian retailer that
yesterday accepted a A$19.6 billion ($16.8 billion) offer from
Wesfarmers Ltd., because buyout firms may ``re-enter the fray,''
National Australia Bank Ltd. said.
The contracts, used to bet on a company's ability to pay
debt, have slumped more than 60 percent since the takeover was
announced. Wesfarmers, Australia's biggest hardware chain, was
the only bidder for all of Coles after buyout firms led by
Kohlberg, Kravis Roberts & Co. and TPG Inc. dropped out of an
auction.
Read more at Bloomberg Bonds News
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