The investment bank is seeking to buy the shares at 60 Australian cents each, the newspaper said, citing unidentified people familiar with the matter. The stock rose 2 percent to 51.5 cents at the close today in Sydney, valuing Goodman at A$1 billion ($1.1 billion).
Goodman has slumped 56 percent in the past year compared with a 12 percent decline in the benchmark S&P/ASX 200 index. Chief Executive Officer Chris Delaney blamed the rising cost of basic food ingredients and a “very challenging retail environment” as he reported a 77 percent decline in first-half profit this month.
“It’s always going to be a challenged business,” said Stuart Jackson, an analyst at JPMorgan Chase & Co. in Sydney with a “neutral” rating on the stock. “The earnings are pretty bombed out at the moment.” A bid would come from “someone who thinks they can run it better,” he said.
Pacific Equity Partners, an Australian buyout firm, and Bain Capital in November 2005 withdrew a A$3.6 billion offer for Goodman after failing to agree on price.
Ian Greenshields, a Sydney-based spokesman for Goodman, declined to comment on the Review report. A UBS spokeswoman said she couldn’t immediately comment.