George Weston Ltd. has just announced that its subsidiary Dunedin Holdings is in discussions with Mexico’s Grupo Bimbo (okay, settle down, it’s not that funny) to sell off its bread and baked goods business. This follows hot on the heels of the sale of Weston’s Neilson Dairy division to Saputo Inc.
Exciting stuff, but the buzz we’re hearing from sources on Bay St. is even more exciting: Some are speculating that Weston is raising cash so that it can buy up the outstanding shares of Loblaw Companies Ltd. and take it private.
Wouldn’t that be a smart idea? After all, Loblaw is pretty cheap right now.
We have no confirmation yet that this is indeed what’s happening, but something is up: Shares of Loblaw have surged up by almost 10 per cent in the last hour and a half. Stay tuned…