Woolworths: Coronation raises stake to 5.7%

Coronation Fund Managers has increased its stake in Woolworths from 1.8 percent to 5.7 percent after the food and clothing chain announced its interest in the takeover of Australian retailer David Jones for about R21 billion. According to The Australian newspaper, Coronation portfolio manager Quinton Ivan said his fund had been buying additional shares in Woolworths for several months, but about half of the newly acquired stock was bought following last week’s announcement of the takeover of department store chain David Jones. “Hearing the rationale about potential synergies between the two businesses, and given management’s track record of delivering on previous acquisitions like Witchery and Mimco… we think it’s quite an attractive transaction,” he said. Woolworths rose 0.93 percent to R68.12 and Coronation added 0.64 percent to R95.20. – Nompumelelo Magwaza