The private equity consortium eyeing Coles Group Ltd remains at three, ensuring Perth conglomerate Wesfarmers faces competition in the takeover battle for Australia's biggest retailer.
Confirming today the buyout firms Carlyle Group, TPG (formerly Texas Pacific Group) and Blackstone Group were still in the game, a spokesman for the consortium snuffed out - for now at least - speculation about another desertion.
Minor partner Bain Group yesterday followed the exit of former syndicate leader Kohlberg Kravis Roberts, and CVC Asia Pacific before them, and suggestions had emerged that Blackstone had followed suit.
"Bain has left the consortium but Blackstone, Carlyle and TPG remain interested in the business and its assets," the spokesman said.
He dismissed speculation the departure of KKR, seen as the leader of the group, had provoked jitters among the remaining players.
"The three remaining players represent three of the biggest five private equity firms in the world," the spokesman said.
"There's been more interest in the stability of this consortium than there has been in Brad and Angelina's marriage."
If it goes ahead with an offer for Coles, the current consortium will face opposition from Perth-based conglomerate Wesfarmers Ltd, which has already spent more than $2 billion to seize a stake in Coles.
Wesfarmers has offered $19.7 billion for Coles but analysts have forecast the successful bid may push past $20 billion.
Wesfarmers has brought along its own firepower, heading a consortium of European buyout fund Permira, private equity firm Pacific Equity Partners and Macquarie Bank Ltd.
Meanwhile waiting in the wings is Australia's largest shopkeeper, Woolworths Ltd, which is believed to be eager to own a slice of the Coles estate, including Officeworks, Kmart and possibly even Target.
But Woolworths has given no clue whether it will enter the auction as a solo player or by joining one of the existing teams.
