takeover thoughts I don't pretend for a minute to know the US food retail industry well, however, I have followed WFM specifically for years. A few thoughts on the takeover speculation:
- first of all, I have seen no credible source for the speculation yet. Publix does not comment on rumors...typcical for most companies, unless a securities institute forces them to comment in the name of stability.
- Having said that, this company is definitely the envy of most grocery chains for its square foot return. I have done my due diligence at numerous stores across the continent, and there is no question that it is a cut above most competitors for consistent quality and more of a positive shopping experience (except for the price, perhaps, but even that has improved since 2008)
- A takeover announcement would certainly take it up from current levels, as someone on here mentioned, as WFM tends to have much higher growth rates and therefor an unusually high valuation
- My one concern about holding after a takeover, would be the fear of a change -- or at least perceived change -- in the core values and philosophy of the business. Its one thing to resell organic food; its something entirely different to stay at the cutting edge of innovation (animal welfare scale, seafood sustainability, GMO ... Of course, any new owner will try to say it is status quo, but talk is cheap. This is an unusual grocery chain that caters to a very well educated and discriminating market segment. They will be scrutinized.