Shares in The Warehouse, New Zealand's biggest retailer, fell sharply yesterday after Woolworths and rival Foodstuffs were blocked by a court from launching separate bids for the company.The court decision, if maintained, could see shareholders in Woolworths benefit through a big capital return; which is an option for our biggest retailer if it is blocked from spending more than & #36;1.5 billion in cash on a possible bid for The Warehouse.In New Zealand, the shares in the company (WHS) slumped 64 NZc, or 17%, to & #36;NZ3.18 in the wake of the news of the Appeal Court decision; its biggest one-day slide since May 2003. & #160;That's more than half the six-month high of & #36;NZ6.66 in December after a decision by the High Court opened the way for a takeover to proceed. Neither Foodstuffs, nor Woolworths have made a takeover offer.Woolies shares ended at & #36;25.20, up 16c, Warehouse ended down 18% in Australia at & #36;2.46.Yesterday's decision was from the NZ Appeals Court, which upheld an appeal from the NZ Commerce Commission against that earlier High Court decision.It means that just as the Australian competition regulator, the ACCC hands a report on Australian grocery retailing, a New Zealand court has indicated there's a limit to the size the country's retailers can get by taking out a competitor.The impending ACCC report has already got the business commentators here moaning about nasty regulators and grandstanding politicians ...
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