All eyes are on supermarket giant Foodstuffs and what it will do with its 10% takeover-blocking stake in The Warehouse.
At a time when The Warehouse signalled it may enter the grocery business on key retail zone sites, Australian supermarket operator Woolworths and Foodstuffs bought blocking stakes of more than 10% in 2006.
This meant no other party could attain 90% of the shares on issue, which would allow for a compulsory acquisition of the remaining shares.
On Tuesday, rich-listers David and Anne Norman snapped up the Woolworths stake, more than doubling their shareholding in what is seen as a vote of confidence in the Red Sheds operator's long-running turnaround push,The New Zealand Herald reported.
The couple acquired the 8.8% stake in an off-market sale for $87.1 million, increasing the stake from 7.4% to 16.4%. However, they said they were not launching a takeover.
Woolworths purchased its stake for $196.4 million, while Foodstuffs earlier paid $150 million.
The Normans' company James Pascoe owns Farmers, Whitcoulls and jewellers Pascoes, Stewart Dawson and Goldmark.
Craigs Investment Partners broker Peter McIntyre said while The Warehouse has had trouble with product lines and retaining profit margins, those issues were being worked through.
''The question is whether this is a meaningful position for Foodstuffs to retain, or whether the funds could be better used elsewhere,'' Mr McIntyre said.
In July 2006, Foodstuffs went on a month-long buying spree, buying its 10% Warehouse stake for $150 million.
Next, in early September, Warehouse founder Stephen Tindall launched a surprise $896 million bid for 51% of the company he did not already own.
However, later that month Woolworths grabbed its 10% stake for $196.4 million, scuppering Mr Tindall's efforts.
The New Zealand Herald reported that under the tenure of Mark Powell, who became Warehouse chief executive in 2011, it had embarked on a five-year turnaround programme.
That included a $180 million refit of its core Red Sheds stores and acquisitions such as the Noel Leeming electronics chain and an 80% stake in online sportsgear retailer Torpedo7.
The Warehouse, which has already downgraded its after-tax profit expectations by 20%, is due to report its half-year result tomorrow.
